4. POTENTIAL SECTORS WITH PROMISING INVESTMENT PROSPECTS by lcy20702

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									4. POTENTIAL SECTORS WITH PROMISING INVESTMENT
   PROSPECTS

4.1 Major Growth Centers across various North Eastern states


  “Entire North East is SEZ; you get all the benefits of SEZ plus 30% of the investment subsidy.”

                                                -   One of the top officials at The Secretariat, Assam



Even though the whole north-eastern region has been declared as the SEZ (Special Economic
Zone), it has been observed that growth center approach is successful in attracting the investment
in various sectors. The growth center is the identified area earmarked by various states for the
development of industrial activities. The basic infrastructure e.g. road, water, electricity, sewage
etc is provided by the government. In the growth centers, other than getting the land at affordable
rates, investors get the basic infrastructure at place. In general, due to proximity and other ethnic
similarities between North Eastern region and Thailand, there exists significant potential for
mutual cooperation in the identified sectors.


  “The major factors that would help towards building the mutual co-operation between Thailand
  and North Eastern region are - proximity and ethic similarities between the people of Nagaland
  and Thailand, talents of North Eastern people and cultural similarities between North East and
  Thailand.”
                                                -   One of the top officials at The Secretariat, Assam




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             50
Major Growth Centers in Assam


   “Basic Infrastructure for setting up the industries has been provided at the following growth
   centers in Assam (in addition to some others growth centers):-

       1. Matia in Gwalpara district
       2. Balipara in Sonipur district
       3. Mankachar – International trade with Bangladesh
       4. Export Promotion Industrial Park (ExPIP) – Across the Bhramaputra river.”
                                             -   One of the top officials at The Secretariat, Assam


The details of the progress in the development of various industrial growth centers in Assam
with their salient feature are mentioned below:-

Export Promotion Industrial Park (EPIP)

Spread over an area of 206 Bighas ((68.10 Acres) of land, the EPIP now have allotted 1,74,878
Sq. m. developed plots and industrial sheds to 50 nos. and 3 nos. industrial units respectively of
which 30 units have manufacturing activities producing wide range of Export Oriented products.
The Park has been developed with National Standard Infrastructural facilities and expansion of
the project is in progress as most of the plots of the park have now been allotted to industrial
units. The Park has created direct employment of about 3000 persons and indirect employment
of about 10,000 persons till date.

Projects in the pipeline in the state of Assam:

IGC Project at Chariduar (Balipara)

The Growth Centre at Chariduar (Balipara) in the district of Sonitpur has been developed to
provide high standard infrastructural facilities to the industrial unit proposed to be set up thereon.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              51
Salient features : Phase I

    •   Total Project Cost: Rs. 25.44 Crores Total Project Cost: Rs. 16.00 Crores
    •   Total area is 500 acres (1500 Bighas) Total Area: 350 Bigha
    •   15 kms away from the heart of Tezpur town
    •   200 kms away from Guwahati city
    •   10 kms from Saloni (Tezpur) Airport
    •   7 kms. From Balipara Railway Station
    •   2 ms. Away from NH52

Land Allotment

A plot of land measuring 24,700 Sqm, has already been allotted and possession is handed over to
M/s Nixcil Pharmaceuticals & Specialties Ltd for setting up of Menthol Crystals, Menthol Flakes
etc. manufacturing units there.

IGC Project at Matia (Growth Centre, Matia)

The Growth Centre at Matia in the district of Goalpara has been developed to provide high
standard infrastructural facilities to industrial units.

Salient features

    •   Total area (Phase I)    162 Acres
    •   Industrial plot 82.5 Acres (50.90%)
    •   Area of roads etc       17 Acres (10.50%)
    •   Commercial facilities 35 Acres (21.60%)
    •   Green Areas 17 Acres (10.50%)

The site is 135 km from Guwahati and 115 km from Borjhar Airport, 15 km from Goalpara town
and Railway station and 15 km from NH37 from Dudhnoi. Adjacent to APWD Road, Sainik
School, Bank, Police Station, Hospital, Schools etc.

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                       52
IID Centre, Bhomoraguri/Naltali

Naltadi is on the national highway is connected to Guwahati. It’s centrally placed and is
connected to all the places. The rail connectivity is to a place which is hardly 20 kms from this
place. Another railway line is under construction. All facilities have been provided for setting up
a manufacturing unit near Natali. It’s connected to Arunachal Pradesh which is a source of raw
materials for the vibrant Food Processing Industry. The whole IIDC is about 33 acres. There
have been inquiries in Cement and Food Processing units for the Development Centre. The IID
Centre at Bhomoraguri/Naltali in the District of Nagaon has been developed to provide
infrastructural facilities of high standard to promote and strengthen small and tiny industries in
the district.

Salient features

    •   Total Project Cost: Rs. 510.00 lakhs
    •   Total area of the IDDC Centre is 123 Bighas (40 acres)
    •   Bhomoraguri Plot is 71 Bighas and Naltali Plot is 52 Bighas
    •   Bhomoraguri Plot is 2 kms. From NH37(A)
    •   Naltali Plot is 0.5 kms. From NH-37(A)
    •   The site is 185 kms from Guwahati (Borjhar) Airport
    •   The site is 45 kms from nagaon Railway Station and 8 kms from Jakhalabandha Railway
        Station.
    •   Nearest 33 KV Substation at Garubandha (Jakhalabandha) is 18 kms from the site
    •   Nearest Telecommunication facility at Kunwaritol is 4 kms from the site
    •   River Brahmaptura along with the Kalia Bhomora Bridge over it is 3 kms from the site
    •   The site is at 26 Degrees 30’N Latitude and 93 Degrees O’E Longitude

Land Allotment

A plot of land measuring 5000 Sqm, has already been allotted to M/s North East Powerline
Industries (P) Ltd for setting up of D.G. Set Manufacturing Plant there.

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           53
IID Centre, Dalgaon, Darrag

The Government of India has approved setting up on an Integrated Infrastructure Development
(IID) Centre project at Dalgaon in the district of Darrang, Assam at a project cost of Rs. 418.00
lakhs. The Grant in aid from the Government of India is Rs. 334.40 lakhs and State Government
is Rs. 83.60 lakhs. As many as 96 numbers of plots measuring 400 sqft. each have already been
developed and ready for allotment to Small, Cottage and Tiny Industries under IID Concept. The
developed land is 28,000 sq. meter. Underdeveloped land is 54,000 sq. meter. It is 90 Kilometers
from Dispur.

Land allotted to three units in IID Dalgaon

1. Assam Industries Company (A bulb manufacturing unit with Korean collaboration): Area:
1400 sqm.

2. Assam Papers Mills (P) Ltd. (A Craft manufacturing unit of Maharastra based company):
Area: 15,000 sqm.

3. Nilon’s Enterprises (P) Ltd. (A food processing unit of Maharastra based company): Area:
15,000 sqm.

Allotments to another 5 nos. of firms are in the process.

IID Centre, Demow

The IID Centre at Demow in the District of Sivasagar is highly sophisticated and environment
friendly IID Centre developed to provide infrastructural facilities of high standard to promote
and strengthen small, tiny industries in the district.

Salient features

The Government of India has approved and sanctioned Rs. 470.00 lakhs as total project cost of
IID Centre, Demow out of which Rs. 376.00 lakhs is grant (80%) from Central Government and

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                         54
the balance Rs. 94.00 lakhs is the State Government equity (20%). The total area of the IID
Centre is 111 bighas (37 acres) with 1 km. Approx away from NH37 and 18 kms from heart of
the Sivasagar town.

It is 80 Kms from Lilabari Airport (Dibrugarh), 75 kms from Rowriah Airport (Jorhat), 8 Kms
from Disang Siring Railway Station and 26 kms from Simaluguri Railway Junction.

Allotment

One plot measuring 3125 sq.m. with a shed and another plot of 5000 sq. m. with a shed have
already been allotted to two nos. of Entrepreneurs for setting up PSC Pole manufacturing and
Bamboo flooring & Panel manufacturing unit respectively. The PSC Pole manufacturing unit
has started their production. The projects are:

1.       M/s. Brahmaputra Valley Construction for PSC Pole manufacturing. Area: 3125 sq.m

2.       M/s. Maisang Products Pvt. Ltd. For Bamboo flooring & Panel Board manufacturing.
Area: 5000 sq.m.

IID Centre, Malini Beel

The IID Centre at Malini Beel in the District of Cachar is developed to provide infrastructural
facilities of high standard to promote and strengthen small, tiny industries in the district.

Salient features

     •   Total Project Cost & means of finance: Rs. 510.00 lakhs
     •   Grant from Government of India equity: Rs. 400.00 lakhs and Government of Assam
         equity: Rs. 110.00 lakhs
     •   Fund received till date: Government of India: Rs. 244.00 lakh
     •   Government of Assam: Rs. 20.00 lakh.
     •   Total area of the IID Centre is 90 Bighas (29.80 acres)
     •   0.8 km, from NH-44 and 1.5 kms from heart of the Silchar town.
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           55
     •   343 kms away from Guwahati city.
     •   25 kms from Kumbhirgram Airport (Silchar)
     •   2 kms from Silchar Railway station.

IID Centre, Titabor

The Government of India has approved and sanctioned an IID Centre Project at Titabor in Jorhat
district of Assam. The total cost of the Project is Rs. 475.00 lakhs, out of which Rs. 380.16 lakhs
(80%) will be Grant from Government of India and the balance Rs. 95.04 lakhs (20%) will be
State Government’s Share. Central Govt. grant of Rs. 200.00 lakhs received till now.

Salient features

     •   Total area of the IID Centre is 120 Bighas
     •   12 kms from NH-37 and 16 kms from heart of the Jorhat town.
     •   324 kms away from Guwahati city.
     •   18 kms from Rowriah Airport (Jorhat)
     •   11 kms from Titabor Railway station.

Allotment

One plot measuring 6600 sq.m. (approx.) has been allotted for setting up of a Floriculture unit.

IID Centre, Dahudi

1.       Name of the IID       Dahudi, District: Nalbari

2.       Date of sanction      17-01-2005

3.       Total Area    33.34 Acres

4.       Approved Cost         Rs. 515.00 lakhs

     Government of India       Rs. 367.20 lakh (80%)
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              56
      State Government/Others Rs. 147.50 lakhs (20%)

5.       Progress/Status       The Project is under implementation.

Central grant of Rs 100.00 lakhs received till now.

IID Centre, Silagaon, Silapathar

1. Name of the IID     Silagaon (Silapathar), District: Dhemaji

2. Date of sanction    28-12-2005

3. Total Area 105 Bighas

4. Approved Cost       Rs. 406.68 lakhs

     Government of India       Rs. 325.34 lakhs (80%)

     State Government/Others Rs. 81.34 lakhs (20%)

5. Progress/Status     The Project is under implementation. Central Govt. Grant of Rs. 200.00
lakhs received till now.

Border Trade Centre, Mankachar

For facilitating the export to various neighbouring countries bordering North East India, the
Government of India has given thrust to create all infrastructural facilities for the exporter of the
region. Assam Government has selected Manakachar in the district of Dhubri, a border point
with Bangladesh, for setting up of the Border Trade Centre. The main objective of the Border
Trade Centre is to provide high standard infrastructural, information and Service facilities to the
exporter and importer to boost the export/import business with Bangladesh.

The Border Trade Centre is located in the Mankachar town which is 100 mtrs. Away from the
border gate and fencing with Bangladesh. It is situated at a distance of 140 kms from Goalpara

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             57
town and 24 kms from Hatsingimari, the sub-divisional head Quarter of Hatsingimari sub-
division. The Centre has also linkage with Tura, Meghalaya with the Tura-Rowmari road. It is
about 290 kms away from Dispur (Guwahati) the capital city of Assam.

Salient features

     •   Total Project Cost: Rs. 428.62 lakh.
     •   Total area of Border Trade Centre is 10,251 sq. mtrs.
     •   290 kms from Guwahati city
     •   140 kms from Goalpara Railway Station
     •   Adjacent to the Custom office and BSF Camps

Agri Export Zone for Ginger

AIDC is the Nodal Agency for an Agri Export Zone (AEZ) – Ginger in the state of Assam to be
implemented with financial assistance from Agricultural and Processed Food Products Export
Development Authority (APEDA). The main objective of the AEZ is to export fresh and
processed ginger through an organized and scientific procurement and storage system which will
initially cover nine ginger growing districts of the state.

AIDC has been entrusted with the specific responsibility of creating the Post Harvest
Infrastructures like a Pack House and Collection Centres apart from coordinating with concerned
State and Central government agencies.

Following are the main components of the Pack House which is going to be set up at EPIP,
Amingaon:

1.       A High Humidity Multi-chamber Cold Storage.

2.       Washing, sorting, grading & packaging units.

3.       A Quality Control Laboratory.


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                       58
Also, steps are being taken to set up the Collection Centres in the districts of Dibrugarh, Nagaon,
Goalpara and Silchar. The gingers collected in the Collection Centres will be transported to the
Pack House in plastic crates after cleansing and preliminary grading.

Assam Gas Cracker Project

The Union Govt. has approved the Assam Gas Cracker Project for production of HDPE and
LLDPE from the natural gas available from OIL & ONGCL and naphtha from NRL to
manufacture HDPE, LLDPE and PP. The Project cost will be Rs. 5460.00 crores with 70% stake
from GAIL, 10% from Oil, 10% from NRL and 10% from the Government of Assam. The
project is expected to generate indirect employment of over one lakh apart from direct
employment. A new joint venture company “Brahmaputra Cracker and Polymers Ltd” has been
incorporated to implement the project.

IIDS Project

Under the Centrally sponsored Integrated Infrastructure Development Scheme (IIDS) of Eastern
and North Eastern Region, the Corporation has already initiated effective steps to set up two
projects one each at Guwahati and Sivasagar to avail 100% Central funding limiting to Rs. 100
crores for each project. The consultant has already submitted the Concept Paper and DFR is
under final stage of completion. Approval from the Central Govt. is awaited. The proposed
infrastructure project will create necessary infrastructures to facilitate entrepreneurs to set up
industrial venture for the industrialization of the State.

Major Industrial Estates in Arunachal Pradesh

Arunachal Pradesh has considerable industrial potential. The state government has realized the
fact and is thus helping in setting up various industrial parks in the state. The facilities provided
in these industrial parks are more than average and with increasing help from the government are
expected to improve in the future. The status of the various industrial estates in the state is
given below :


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             59
Bam, West Siang District: It spans in an area of 50 acres. The entire infrastructure is being
funded by Central Govt. and allocation of Shed and others are being controlled by State Govt.
Till date only 4 sheds have been developed in the state. The main problem in this estate is that it
lacks the constant supply of water and electricity. The road connectivity is not developed in the
state.

Changlang, Changlang District: It spans in an area of 11372 m2. The entire infrastructure out
here is funded by Central Govt. and allocation of Shed and others are being controlled by State
Govt. Till date only 4 sheds have been developed in the state. The water & electricity supply
along with road connectivity is developed but the sheds here are in a dilapidated condition.

Miao, Changlang District: It spans in an area of 202350 m2. The entire infrastructure out here
also is funded by Central Govt. and allocation of Shed and others are being controlled by State
Govt. Till date only 4 sheds have been developed in the state. There is not much availability of
water supply, electricity and connectivity by roads.

Pasighat, East Siang District: It spans in an area of 8008 hectares. The entire infrastructure out
here also is funded by Central Govt. and allocation of Shed and others are being controlled by
State Govt. There are only 2 sheds in the estate and all the basic amenities are available here.

Namsai, Lohit District: It spans in an area of 16188 m2. The infrastructure here as well is
developed in the same way. There are only 2 sheds in the estate and all the basic amenities are
available here.

Ziro, Lower Subansiri District: The area is not disclosed by the Govt. of India yet. It has a total
of 5 sheds. There is no proper infrastructure providing the basic amenities.

Naharlagun, Papumpare District: It spans in an area of 32376 m2. There are in all 24 sheds in
this estate. Water, electricity and road connectivity are available.

Itanagar, Papumpare District: It spans in an area of 16188 m2. The entire infrastructure out here
also is funded by Central Govt. and allocation of Shed and others are being controlled by State
Govt. Till date 11 sheds have been developed. All the basic facilities are available in this estate.


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              60
Tawang, District Tawang: It has a total area of 28665 m2. The area is notified, no shed
construction is in process currently. The lands are being allotted to entrepreneurs for setting up
ventures. It is well equipped with the basic facilities available.

Deomali, Tirap District: It spans in an area of 18630 m2. The entire infrastructure is being
funded by Central Govt. and allocation of Shed and others are being controlled by State Govt. In
all 6 sheds have been developed till date. All the basic facilities like water, power & road
connectivity are available. All the three sheds have been occupied by M/s Ang Tea & Agro Food
Products.

Khonsa, Tirap District: It spans in an area of 18630 m2. Here also the entire infrastructure is
being funded by Central Govt. and allocation of Shed and others are being controlled by State
Govt. In all 2 sheds have been developed. Water, Power & road connection are available. Both
sheds are being occupied by Paramilitary Force.

Tippi, West Kameng District: It spans in an area of 6.91 hectares. Here also the entire
infrastructure is being funded by Central Govt. and allocation of Shed and others are being
controlled by State Govt. In all 3 sheds have been developed. Water, power & road connection
are available.

Wanghoo Kameng: It spans in an area of 6.91 hectares. Here also the entire infrastructure is
being funded by Central Govt. and allocation of Shed and others are being controlled by State
Govt. Although it falls under Notified Area no shed constructed so far out here.

Thus looking closely at these estates we find that most of the industrial parks in Arunachal
Pradesh are providing the basic facilities such as water, electricity and road connectivity which
are otherwise either non-existent or grossly under developed in the state.

In the Industrial areas the State Govt. allots land to private parties on lease basis for setting up of
industries where they can avail subsidy under North East Industrial Policy. In the industrial areas
the private parties develop the land & all infrastructure themselves




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                               61
Major Growth Centers in Meghalaya

An EPIP is being set up in Byrnihat over an area of 250 acres. This scheme, under the
Government of India, is aimed at encouraging export efforts.


  “Export Promotion Industrial park has come up in Barniyahat. It has large number of ferrous
  alloys units. The land is also available. We have also acquired 200-300 acres of land. There is
  plan to acquire another 300 acres land at Usni, which is near Barniyahat.”

      -     One of the top officials from Meghalaya Industrial Development Corporation (MIDC)



The table below shows the details about industrial estates of Meghalaya such as area, total
number of sheds constructed, total number of sheds allotted and the number of sheds functioning
properly.


                                                                                            Total nos. Of
                         Location                               Areas in acres
                                                                                               sheds
            Shillong (East Khasi Hills)                             10.22                          6
          Mendipathar (East Garo hills)                                7                           4
             Tura (West Khasi Hills)                                19.83                          5
                      Jowai                                         14.56                          4
          Williamnagar (East Garo hills)                             5.13                          4
           Nongstoin (West Khasi Hills                              10.00                          4
                      Total                                         66.74                         27
                 Industrial areas                             Area (in hectare)               No. of units
           Barapani (East Khasi Hills)                             109.67                         21
      Byrnihat (Bordering Assam on a way to                         47.51                         20
                     Shillong)
                      Total                                          157.18                         41
                   Grand total                                       223.92                         68
                                  Table 18: Various industrial regions of Meghalaya
              Source: Meghalaya industrial development corporation(MIDC) Export promotion industrial park




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Major Growth Centers in Manipur

                                      Industrial Estates of Manipur
 Name of         Location         Facilities             Total no of      Total no       Total no          Total no of
    the                           Offered                  Sheds          of Sheds       of Sheds            Sheds
 Industrial                                          Constructed          Allocated      Occupied      Functioning
  Estates
                               Subsidised
 Industrial     Takyelpat,
                                    rent,
  Estates,       Imphal                                      40                38           38                 24
                                   Power,
Takyelpat        Manipur
                                   Water
                                      Table 19: Industrial estates in Manipur
                                                  Source: NEDFi


Major Growth Centers in Mizoram

There are some industrial estates situated in Mizoram with basic facilities being offered at the
industrial estates. The industrial estates in the state are discussed below :

Zuangtui:      Located    in    Aizawl         it    is     an    Industrial    Plot,   Subsidy     upto     25%     on
development of land within the estates by entrepreneurs. There are only 6 functional units
currently out of the initial 20.

Kolasib:      Located    in    Aizawl       it      is     an     Industrial   Plot,    Subsidy     upto     25%     on
development of land within the estates by entrepreneurs. There are only 2 functional units
currently out of the initial 5.

The state government in Mizoram provides various subsidies to the businesses setting up units in
these industrial parks thus helping them to overcome the initial hurdles in setting up businesses
in the state due to its overall under developed infrastructure.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                                63
Major Growth Centers in Nagaland


   “The State Government has already taken some plan and accordingly we are developing
   Integrated Infrastructure Centers—one in Kohima District and one in Mokokchung District.
   We have also received the formal approval from the Central Government in the Agriculture
   and Food Processing industries especially in economic zone. One economic zone will be under
   the public sector and another multi economic zone will be under the private sector.”

         -   One of the top officials from Nagaland Industrial Development Corporation (AIDC)


The table below shows the industrial estates located in Nagaland and details about them. The
details include the facilities offered, total number of sheds allocated, number of shed s
constructed and number of sheds occupied. The industrial estates in the states are discussed
below:

Dimapur Industrial Estates (1): Here all 12 sheds are fully functional. The availability of power,
water and sheds are proper at subsidized rate.

Dimapur, Industrial Estates (2): Here all 13 sheds are fully functional. The availability of
power, water and sheds are proper at subsidized rate.

Kohima, Industrial Estates: The sheds data is not available. The availability of power, water
and sheds are proper at subsidized rate.

Tuensang, Industrial Estates: Here also power, water and sheds are available at subsidized
rates.

As see from above the basic facilities such as power, water and road connectivity is being
provided in the industrial parks. Power and water are available at subsidized rates in these
industrial parks.

There are two proposed Integrated Growth Centers that are to be developed in Nagaland which
were approved by the Govt. of India. Their brief description is given below:
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          64
 Integrated Growth           Place             State                   Type              Area (in
      Centers
                                                                                         hectares)
 M/s H.N. Company          Dimapur           Nagaland              Multi product           400
 Nagaland Industrial       Dimapur           Nagaland              Agro and food            50
   Development                                                      processing
    Corporation
      Limited
                                      Table 20: SEZs in Nagaland
                                     Source: NER Databank, NEDFi



  “One industrial hub is under construction in the Ganeshnagar area in Dimapur covering a plot of
  500 acres of land. But it may not be specific to any particular sector of industry.”

        -   One of the top officials from Nagaland Industrial Development Corporation (AIDC)



Major Growth Centers in Tripura

The details of major industrial estates of Tripura are discussed below:


Dewanpara Industrial Estates: Located in Dharmanagar, North Tripura there are no shed out
here. The facilities of power, water and community are provided.


Arundhati Nagar, Industrial Estates: Located in Agartala, West Tripura it has constructed 45
sheds with complete power, water, electricity and roads facilities.


Badherghat Industrial Estates: Located in Agartala, West Tripura it has constructed 24 sheds
with complete power, water, electricity and roads facilities.


Kumarghat Industrial Estates: Located in Kumarghat, North Tripura it has constructed 10
sheds with complete power, water, electricity and roads facilities.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                65
Dharamanagar, Industrial Estates: Located in Dharamanagar, North Tripura it has constructed
8 sheds with complete power, water, electricity and roads facilities.


Dhalai Growth Centre: Located in Ambassa, Dhalai District it does not have any shed but it has
power, water and other community facilities.


Dukli Growth Centre: Located in Dukhli, West Tripura it has a total of 50 sheds out of which
10 are functional. Here also all the basic facilities are available.

As see from above the basic facilities such as power, water and road connectivity is being
provided in the industrial parks. Power and water are available at subsidized rates in these
industrial parks.




4.2 Major Industries
The industries which are coming up in Arunachal Pradesh in a big way are fruit based alcoholic
beverages, processing of citrus fruits, multi-purpose fruit and vegetable processing, apple
cultivation, ginger processing, tapioca production etc.

The industrial scenario in Assam is dominated by two major industries oil & natural gas and tea
which account for maximum value addition. The oil and natural gas industry is government
controlled. The tea industry in Assam, which accounts for around 50% of the country's total tea
production, is mainly controlled by large, private companies. Both the sectors have made
considerable progress over the years and are away head of other industries in the state. Besides
these two industries, the other important industry in the state is mining of coal and limestone.

The manufacturing and processing sectors have shown a mixed trend in performance during the
last decade. The manufacturing sector suffered a major setback following the ban imposed by the
Supreme Court on felling of trees and running plywood factories. Nearly 300 plywood factories
in Assam producing 371 lakh sq. meters of commercial plywood per annum had to close down
since 1996.
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              66
However, the service sector has recorded an impressive growth in recent years. Results of a
recently conducted survey shows that sectors like transportation, hotels, tourism, greeting cards,
health-care, courier services, travel agencies and computer education are growing at a
phenomenal pace in Assam in the last three-four years.

Some of the major industries in Assam are as follows

   •   Tea Processing
   •   Wheat Flour
   •   Plywood
   •   Fertilizer and Pesticides
   •   Refinery Product
   •   Cement
   •   Jute Textiles
   •   Paper
   •   Coal

The figure below shows the industrial profile of Assam.




                                   Figure 19: Industrial profile of Assam
                                       Source: Government of Assam
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          67
The table below shows the major medium and large scale industries of Manipur along with their
year of establishment, product manufactured by them and the sector they operated in.

The major industries of Manipur are shown in the table below:

                          Large & Medium Industries of Manipur
Serial           Name & Address                   Year of              Product         Sector
 No.                                          Establishments
  1.          Manipur Spinning Mills                1973            Acrylic Yarn       State
           Corporation, Loitam Khunou,                                                 Govt.
            Manipur, P-27, Imphal Dist.
                  Manipur Central
  2.            Kandsari Sugar Mill,                1973                Sugar          State
                   Thoubal Dist.                                                       Govt.
  3.       Manipur Cycles Corporation,              1985             Assembling        State
            P.O.Takyel Industrial Estate,                          Manufacturing       Govt.
           Nilo Singh Building, Kanchup                                 Cycle
              Road, Imphal, Manipur
  4.         Manipur Cement Limited,                1992               Cement          State
           Hundung, C/O Directorate of                                                 Govt.
                Industries, Manipur.
  5.          Manipur Pulp & Allied,                NA                 Bamboo          State
         Dist. Imphal, Jiribum, Takyel Pat.                       Chipping Product     Govt.
                 Imphal, Manipur.
  6.        Manipur Vanaspati & Allied              1988             Edible Ghee       State
            Industries Limited, Thangal                                                Govt.
              Bazar, Imphal, Manipur
  7.          Manipur State Drugs &                 1987           Pharmaceutical      State
          Pharmaceutical Limited, Imphal                               Product         Govt.
             Dimapur Road, Nillkunthi


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          68
  8.            MAGFRUIT Limited                            NA                Fruit Processing    State
               Pharmaceutical Limited                                               Squash       Govt.
  9.             Manipur Electronics                       1987                   TV, Radio       State
             Development Corporation,                                             Assembling     Govt.
          Takyeal Industrial Estate, Imphal,
                Imphal West District.
  10.          Meerless Steel Limited,                      NA                       Rods        Private
                    Kanglatombi                                                                  Sector
  11.        Shree Manipur Flour Mills                     1988                   Wheat Flour    Private
          Limited, Mantripukhuri, Imphal,                                                        Sector
               Imphal Central District
  12.        K. B. Sons Private Limited,                    NA                Brick Industries   Private
                  Lamsang, Imphal                                                                Sector
                             Table 21: Large and medium industries in Assam
                                      Source : NER Databank, NEDFi


The table below shows the major small scale industries in Manipur.

Small Scale Industries Units in Manipur

                          District                                    No. of Units
                       Imphal West                                        5146
                          Ukhrul                                          744
                         Senapati                                          290
                      Churachandpur                                        522
                       Tamenglong                                          477
                         Chandel                                           326
                         Thoubal                                           538
                        Bishnupur                                          648
                       Imphal East                                          80
                              Table 22: Small scale industrial units in Manipur
                                       Source : NER Databank, NEDFi


From the above table it becomes clear that West Imphal is the main hub of small scale industries
in Manipur. It constitutes about 80% of the entire industry. The other locations have a relatively
uniform distribution of industries.


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                     69
Like most other north—eastern state, Meghalaya is dependent on wood and wood based
industries to a large extent. The mining sector also contributes significantly to the state’s income.
Private entrepreneurs on small scale also carry it out. Most of the private Entrepreneurs, who
have coal and limestone deposits in their land holdings, extracts the minerals and sent to Assam
and Bangladesh for sale. Thus in the absence of down stream industries in meghalaya little value
addition takes place important industries in the state are confined to the manufacture of cement,
lime mini steel plants granite cutting and polishing and so on. Almost all of them are of medium
scale industry. Other small scale industries are tailoring, wooden furniture making cane and
bamboo works, flour and rice mills, weaving, and bakery. The list of large and medium
industries in Meghalaya is given in Appendix 13.

However, the state government is planning to convert state into hub of industrial activities. In
view of the same, the state Government offers subsidies such as, on cost of infrastructure, on
Transport, on Training, on Power etc., the Central Government has since declared that new units
in the North-Eastern Region will be eligible for exemption from income tax for a period of five
years from the date of commercial production. -There are a number of potential sectors that have
been identified as Minerals Based Industry; Horticulture & Agro based Industry, Power,
Tourism, Health care etc.

Electronics and Information Technology

Electronics & Information Technology is going to be the industry of the new millennium. The
pollution free atmosphere in the state of Mizoram is congenial for development of this sector.
The Mizoram state government will attach top priority to these sectors and will announce a
separate policy on Information Technology.

Bamboo-based and timber-base products
The vast Bamboo resources of Mizoram will be optimally exploited for setting up of industry for
manufacturing various bamboo-based products such as fibre-board, bamboo mat-ply, different
kind of house-hold products and high quality toothpick, chop -stick and joss-stick. This sector,
therefore, will attract special attention of the Government. Plantation of high value timber and


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             70
bamboo will be encouraged to sustain timber-based industries. Timber –based and bamboo-based
industries will be encouraged to the limit sustainable by the Mizoram ecology and environment.

Textile, Handloom and Handicraft Industry
Handloom and Handicrafts, which is a traditional industry in Mizoram, will continue to receive
prime attention from the government. Modernization of this sector by induction of improved
design and technology to make it an export oriented sector will be encouraged and promoted.
Export oriented textiles and readymade garments industries will receive special attention of the
government. Induction of power-looms will be encouraged selectively while safeguarding the
interests of traditional weavers of Mizoram.

Plantation Fibre and Hill Brooms
Industry based on plantation fibre and Hill Brooms will be encouraged keeping in view the
sustained extraction of such items from the forest of Mizoram.

Tung Oil and Non-edible oil extraction
With the encouragement and assistance of the State government, vast area of land has been
planted with Tung trees at the village level. The indigenous demand of Tung oil is in laminates,
paints and ink industries, which at 9 present, is being met in India by import only. Tung seeds
will be considered by the government as priority industry and will be encouraged. Extraction of
Citronella oil, having ready market in pharmaceutical and health-care industries will be
encouraged. Also, plantation of edible oil seeds and extraction of oil thereof will be encouraged.

Tea, Rubber and Coffee Industry
Entire Mizoram has been declared as non -traditional area for Tea development which qualifies
to receive incentives unlike traditional areas. Tea plantation is not new in Mizoram. However,
scientific and commercial. Tea Plantation will be encouraged as family oriented scheme, with
encouragement for setting up of processing plants in the private sector. Coffee and Rubber based
industries will receive due attention from the government for their cultivation and processing.
Interest of indigenous laborers will be protected while promoting tea industry.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           71
KVI Sector Units
Industries on KVI patronized by KVIC will also continue to receive patron age from the State
Government as units in this sector generates a large number of employment and items of
common-use.
  District Code                   Name of district                          No. of registered SSI unit
         01                             Mamit                                              44
         02                            Kolasib                                             61
         03                             Aizawl                                            4740
         04                           Champhai                                             63
         05                            Serchhip                                            78
         06                            Lunglei                                             784
         07                           Lawngtlai                                            128
         08                              Saiha                                             252
                    Table 23: Number of registered SSI units in various districts of Mizoram
                                          Source : NER Databank, NEDFi




The major industries of Nagaland are shown in the table below:

                            Large & Medium Industries of Nagaland
Serial               Name & Address                             Year of               Product       Sector
  No.                                                       Establishment
   1.          Nagaland Sugar Mill Company                        1973                  Sugar       Public
                Limited, Dimapur, Kohima                                                            Sector
   2.         Nagaland Pulp & Paper Company                       1971                  Paper       Private
              Limited, Tuli, Dist: Mokokchung                                                       Sector
   3.             Citronella Oil Industries,                       NA              Citronella Oil    NA
               Mongsuyuyumi Village, Dist:
                        Mokokchung
   4.              Pineapple Fibre Plant,                          NA                Pineapple       NA
                Baghty Village, Dist: Wokha                                             Fibre
   5.           Nagaland Plywood Factory                           NA                 Plywood        NA
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                     72
                          Dist: Mon
   6.               Mechanised Brick Plant,                      NA              Brick Industry     NA
           Village: Tolumi, P.O.: Dimapur, East
                            Wing
   7.       Fruit & Vegetable Processing Plant                   NA                  Food           NA
                                                                                  Processing
                             Table 24: Large and Medium industries in Nagaland
                                        Source : NER Databank, NEDFi



The major large & medium industries of Tripura are shown in the table below:


                                                               Year of
 Serial                Name & Address                                                Product      Sector
                                                            Establishment
  No.
   1.                  Tripura Jute Mill                           1981                Jute       Private
             Dadarghat P.O.: Agartala ONGC,                                          Product      Sector
                Agartala, Dist: West Tripura
   2.         NERAMAC Near Agartala Court                          N.A.               Food         State
                Agartala, Dist: West Tripura                                         Product      Govt.
                                 Table 25: Large scale industries in Tripura
                                       Source : NER Databank, NEDFi




4.3 Potential Investment areas in the Identified Sectors
The identified three broad sectors i.e. Tourism, Food Processing and Horticulture and
Infrastructure (including Roads, Mines and Minerals and Power generation – both conventional
and non-conventional sources) sums up the investment opportunities present in the North East of
India. In addition, there is also a considerable scope in the Jute and bamboo based industries
(handicraft etc).

The economic ties with North Eastern states would help Thai investors in developing the
economic activities with other ‘South Asian Sub-regional’ economies.



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                      73
   “Travel in the SASEC subregion (North East, Bhutan, Nepal and Bangladesh) is constrained
   by bad roads, poor linkages and minimal wayside amenities. Realizing the tourism potential of
   the Asian Highway within SASEC will greatly enhance opportunities for pro-poor tourism.….
   Infrastructure projects will be asked to involve the TWG (Tourism Working Group) as the
   voice of SASEC tourism.”

                    -   One of the circulars of Asian Development Bank on SASEC sub-region



The snapshot of the investment potential in the identified sectors has been shown below:-




4.3.1 Tourism
The tourism sector holds high promise of becoming the highest money earner for the North-
Eastern states of India. It has huge potential for generating and augmenting employment
opportunities on a large scale and hence making the development more inclusive. The North-
Eastern states are well endowed with the rich landscape. Hospitality of the people of this region
is commendable and is recognized.




      Figure 20: Tourists in the North-Eastern states of India over the past few years
                               Source: Ministry of Tourism, India

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                         74
The total number of domestic tourists visited N-E during the year 2003 were 29,21,811. This
number has increased to 35,50,548 in the year 2005. In comparison to major tourist states of
India, these figures are very less. Also, the N-E states combined are unable to attract more than 1
lakh foreign tourist in the past three years. The major reason behind the low tourist turnout in NE
states is marketing. Only, in the recent years state governments are aggressively advertising their
states within and outside the country.




               Figure 21: Foreign Tourists visiting North-Eastern States on an annual basis
                                    Source: Ministry of Tourism, India



Tourism potential across various states

Assam
It is spread beneath the foothills of the Eastern Himalayas. After 600 years, Ahom-Kingdom,
Assam became part of British India in 1826 and then a constituent state of Independent India.
The lifestyle of the people is colourful and cheerful. Assam has been a melting pot of various
racial stocks, viz. Indo-Burmese, Mongoloid, Austro-Asiatic, Aryan, Dravidian etc. The state is
peopled by a large number of tribal groups; major among them being the Boro-Kacharis, the
Deori, the Misings, the Dimassas, the Karbis, the Lalungs,and the Rabhas etc. Ahkhomiya or
Assamese is the native language of Assam.



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           75
The major tourist destinations are Temple of Kamakhya, Umananda, Vashishtha Ashram,
Ugratara Temple, Pobitora, Digboi Oil Refinery, Kaziranga National Park, and War Cemetery
etc.

The tourism potential in the state of Assam can be summed from the following statement of one
of the top Government Officials of Assam.




   “We are focusing on nature and adventure tourism & cultural and religious tourism. Under
   adventure tourism we are thinking of river rafting, paragliding, trekking etc. Tourism has risen
   in the last 4 – 5 years only. It is absolutely virgin area.”

                  -   One of the top officials from Ministry of Tourism at The Secretariat, Assam


Entire North-East, particularly Assam, is at the stage today where Cambodia and Vietnam were
there around 3 – 4 decades back, Till now it does not ‘Tourism Policy’. The North-East Tourism
Policy would be launched by mid 2008. This underscores the underlying tourism potential in the
relatively lesser utilized “hot-spots”.




By virtue of the great river ‘Bhramaputra’ that flows across the valley of Assam up to Kolkata
(in West Bengal), there lies significant potential in developing ‘river cruise’. The early step in
developing the river cruise and its huge success provides the testimony to the ‘river cruise’
potential. ‘Assam Bengal Navigation Company’ – a river cruise company has been started with a
joint venture between Assam Government and the British Company who specializes in river
cruises along the dams. This company brings the client. It currently has 2 cruises. It is up market
priced at USD 200 per cabin per night charges.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           76
   “We (Assam Government) are developing the third cruise boat in the assistance with Kerala
   (Back water cruises). It will be launched in Dec 2008. It will cost around USD 2 million (Rs 8
   Crores). Tariff will be USD 250 to 400 per cabin per night. This 3rd boat is under construction
   only and has been sold for the next year.”

                 -   One of the top officials from Ministry of Tourism at The Secretariat, Assam


Adventure, Cultural and Religious Tourism are being focused on Tourism. River Rafting,
Paragliding, Trekking are also being targeted. The negotiations are going on with the Asian
Development Bank (ADB) for funding Tourism Industry Infrastructure Development. Over last
fifty years, government has established number of guest houses for tourists across beautiful
locations. It is looking for reliable and experience investor who can forge a partnership with
them for leasing and renovating the existing guest houses / other hotel properties with ATDC
(Assam Tourist Development Corporation).




   “In the month of October, 2007 during our visit to Thailand we told the tourist operators in
   Thailand, they can take some of the tourist bungalows and lodges on long term lease, The
   Government (of Assam) would be assisting them. They don’t require capital investment. The
   air fare (from Guwahati to Thailand) is hardly USD 100.”

                 -   One of the top officials from Ministry of Tourism at The Secretariat, Assam




AIDC (Assam Industrial Development Corporation), the investment body of Assam was found to
be quite interested in the investment in the luxury hotels from Thai investors in the state.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             77
   “AIDC also finances private hotels. If they want to develop a chain of hotels, then AIDC is
   definitely interested and can tie up with them. They might not have any role in management
   but some stake and in board of directors. They can also partner Assam Tourism
   Development Corporation. Right now, AIDC is quite interested to partner in a 5-star
   project.”

           -   One of the top officials from Assam Industrial Development Corporation (AIDC)




The capital investment is the tourism sector is also happening through various International
Lending Agencies like ADB (Asian Development Bank).


    “In last 5 years, investment in Tourism sector has seen more than the investment in last 50
    years. In power sector, in last 4 years the investment done is more than that done in last 30
    years….. we are also talking with ADB (Asian Development Bank) for their phase 2 funding
    to us to develop tourism destinations.”

           -   One of the top officials from Assam Industrial Development Corporation (AIDC)




The Thai investors needn’t do capital investment initially but can take up the tourist guest houses
for initial sometime, based on some terms which can be negotiated. Talks have been going on
with ADB to develop a Theme Village, which can provide a one stop shopping, one stop touring
experience. Assam has also got an area which has underwater forest development and natural
wildlife sanctuary in a radius of 1 kilometer. As the political problems have also been evaded
lately, tourism is likely to come up as a very active industry. Several companies have evinced
interest in developing various areas leveraging the geographical considerations and scenic
beauty.



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            78
   “One resort has come up known as Global Management Services. They have started Exotic
   Holiday Restaurant. It is located at the Assam-Arunachal Pradesh Border. They have taken up
   developed a resort also. It is close to the river and close to the Sanctuary at Balipara. We are
   getting lot of up-market English tourists there. In Kajiranga area also a heritage has come up
   with the private initiative.”

                         -   One of the top officials from Ministry of Tourism, Assam Secretariat




Arunachal Pradesh

Arunachal Pradesh is a serene land tucked into the North Eastern tip of India. There are places of
worship and pilgrimage such as Parasuramkund and 400 years old Tawang Monastery, sites of
archeological excavations like Malinithan and Itanagar, serene beauty of lakes such as Ganga
lake or Sela lake or the numerous variations of scenic beauty of the snow cladded silver
mountain peaks and lush green meadows where thousands of species of flora and fauna prosper.
In addition, the state provides abundant scope for angling, boating, rafting, trekking and hiking.
Besides, there are a number of wild life sanctuaries and national parks where rare animals, birds
and plants will fascinate the visitor.

The climate varies from hot and humid to heavy rainfall in the Shivalik range. It becomes
progressively cold as one progresses northwards to higher altitudes. Trees of great size, plentiful
climbers and abundance of cane and bamboo make Arunachal evergreen.

The major tourist destinations in the state having potential for development in the future are
shown in the table below:

    •   Tawang
    •   Bhismaknagar
    •   Akashiganga
    •   Itanagar

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           79
   •   Parashuram Kund
   •   Malinithan
   •   Namdapha
   •   Bomdila

Tawang

The district is bordered by Tibet in the North, Bhutan in the South-West and Sela ranges separate
West Kameng district in the East. The inhabitants of the districts are all of Monpa tribes except
Shyo village which is dominated by people of Tibetian origin.

Tawang Monastery is one of the most important elements in Social and Religious life of the
Monpas. This Monastery is known as "GALDEN NAMGYEL LHATSE". It is one of the largest
Lamaseries of Mahayana sect in Asia. This fortified complex covers an area of 135 sq. meters
enclosed by a compound wall of 610 meter long. Within the complex there are 65 residential
buildings and 10 other structures. The library has valuable old scriptures mainly Kanjur and
Tanjur numbering 850 bundles. There are beautiful lakes around Tawang like Pankang Teng
Tso, Sangetser Lake and Banggachang Lake.

Parasuram Kund

It is located 13 miles north-east of Tezu, District Headquarters of Lohit district. Thousands of
pilgrims visit this place from all parts of India every year during Parasuram mela held in the
month of January.

Bhismaknagar

It is located in Dibang Valley district and is a sacred heritage of the Idu Mishmis. It is a symbol
of past glory and indicates the high standard of civilization that once prevailed around
Bhismaknagar.

Malinithan

Malinithan is a temple site in ruins. It is only 1 Km east of Likabali, the nearest administrative
centre. In course of series of excavation from 1968 and ending 1971, ruins of temples and
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           80
valuable scriptures were unearthed at this site. The fame of Malinithan as a holy place of worship
draws a large number of visitors and pilgrims. The site excavated has beautifully designed and
decorated basement of a temple, divine images, icons of deities, animal motifs and floral designs,
carved columns and panels. The temple dedicated to Goddess Durga at Malinithan is built on the
classical tradition of Orissa. According to the local legend associated with the place, Lord
Krishna carried away Rukmini the daughter of King Bhismaka on the eve of her marriage with
Shishupal. Krishna and Rukmini were welcomed here by Parvati with garlands. Parvati thus
acquired the name Malini and the place Malinithan.

Akashiganga

Akashiganga is believed to be associated with the legend of Parvati narrated in the 8th century
Kalika Purana. It is said that Lord Shankar roamed in the sky with the dead body of Parvati
(Sati). To bring him out of attachment for the dead body Lord Vishnu using his 'Sudarshan
Chakra' cut the body into pieces. During this process it is said that one of the body piece fell in
the area. This place is called Akashi Ganga and is very popular as a sacred place. There is a
temple near the road. Akashiganga.

Namdapha

It is famous for its wild life sanctury, which has been declared as a national park. It is a few
kilometers away from Miao. Namdapha National Park covers a wide range of altitudes from 200
meters to 4,500 meters. The park, largely inaccessible, has diverse habitats and flora and fauna
that are typical of this area. The inaccessibility of the greater part of the park has helped to keep
the forests in their pristine state.




                     Figure 22: Wildlife in Namdapha (Arunachal Pradesh)
                      Source: http://www.arunachalpradesh.nic.in/tourism.htm
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             81
Itanagar

It is the capital of the state. It is situated at the foothills. The township is situated at 350 meters
above mean sea level. Itanagar can be called as mini India, as people from all over the country,
live here in harmony. As a capital town, Itanagar is well connected with the rest of the country
by road and air communications. Pawan Hans provides helicopter service between Guwahati and
Naharlagun (Itanagar). Deluxe buses are available from Guwahati.

Here one can find historical fort called Itafort, dating back to the 14-15 centuries, after which it
is named. These include legendary Ganga Lake (Gyakar Sinyi). It is a beautiful picnic spot, 6
kms away from Itanagar; a green forest lake surrounded by primeval vegetation, orchid masses
on tall trees, tree ferns provides a small taste of the magnificent forests of the state. Consecrated
by the Dalai Lama, the Buddhist temple reflects the extensive Jawaharlal Nehru State Museum
provides a kaleidoscope of Arunachal Pradesh and one can see wood carvings, musical
instruments, textiles, handicrafts and archeological finds.

Bomdila

It is a beautiful small town at a height of 8000 feet above sea level from where one can see the
brilliant landscape and snow-clad mountains of the Himalayan Range. The Buddhist monastery
of Bomdila is the repository of culture and is among primary attractions of the area.

It has a lot of attractions for the tourists with its cool climate, Apple orchards, artistic people,
snow-capped Himalayan peaks and Buddhist Gompas.

Local site seeing to Dirang valley and the famous Sela Pass (13,700 ft. M.S.L.) are thrilling
experience on the way to Tawang. The Orchid Research and Development Station at Tippi and
two other Orchid conservation sanctuaries located at Sessa and Dirang are worth seeing places.

Entry in Arunachal Pradesh

    i. Domestic Tourists
           Innerline Permits are issued by the Secretary (Political), Government of Arunachal
           Pradesh, Itanagar and respective Deputy Commissioner and Additional Deputy

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                               82
          Commissioner of the Districts. These can also be obtained from Resident
          Commissioner's office/ Liaison Offices located at New Delhi, Kolkata, Guwahati,
          Shillong, Dibrugarh, Tezpur, North Lakhimpur, Jorhat.
   ii. Foreign Tourists
          The foreign tourists can obtain the Protected Area Permit from all Indian Missions
          abroad, Home Ministry, Govt. of India and Home Commissioners, Govt. of Arunachal
          Pradesh, Itanagar, for a period of 10 (ten) days for a group consisting of four or more
          persons.

The state has a huge potential for tourism development in the future but most of the state is not
connected to the outside world. There is not a single airport in the state. The communication
services such as cellular services are also almost non-existent in the state. The perception of the
North-East being prone to militancy is yet another reason hampering tourism development in
Arunachal Pradesh.

Manipur

Nestled on a plateau far above the sea level, Manipur is the wondrously beautiful little Shangri-
La. Literally meaning a jeweled land, legendary belief has it that Manipur was discovered as a
result of the delight the Gods took in dancing. Today Manipur’s mythological concept of
creation is revealed in her famous folk- dances.


The richness of nature has inspired descriptions such as the Switzerland of the East with its
tripping rivers, carpet of flowers, exotic blooms and lazy lakes. It’s also a mosaic of traditions
and distinctive cultural patterns.


People of the state live together since time immemorial sharing turbulent inroads of war,
amalgamation, assimilation and unity and hence possessing dynamism and resiliency resulting
from experience and destiny, the Manipuris are an ideal society. The Meiteis who constitute the
largest population generally reside in the plains and the tribes including Naga, Kuki- Chin- Mizo
groups inhabit mostly the hills. People here have a long tradition of martial arts and indigenous


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           83
games. The Sagol Kangjei (or Polo) originated in Manipur. It is still a popular game.
International players participate in the Polo tournaments at Imphal.


There are many places of tourist interest in Manipur. Important tourist destinations are Shree
Shrre Govindajee Temple, Saheed Minar, Manipur State Museum, War Cemeteries, Polo Ground
etc.


But the State fails to attract reasonable number of tourists due to the threats of insurgency. The
inflow of tourists, both foreign and domestic is decreasing gradually.
In 2001-02, total number of tourists visiting Manipur was only 73,973 (131 foreigners, and
73,842 domestic) as against 1,04,263 (409 foreigners, and 1,03,854 domestic) in 2000-01. The
tourism infrastructure is inadequate in the entire State. The overall scenario of tourism sector is
very bleak in Manipur.

All    foreigners   intending   to   visit   Manipur    can   avail    of   permits   from    Indian
Missions abroad, FRROs in Mumbai, Calcutta and Delhi, Immigration Officer in Madras and the
Home Commissioner, Govt. of Manipur, Imphal. Domestic tourists intending to visit Manipur by
road via Dimapur/ Kohima require Inner Line Permits to pass through Nagaland. These are
issued by the Liaison Officers of the Govt. of Nagaland at New Delhi, Calcutta, Guwahati,
Shillong and the SDO (Civil), Dimapur. Deputy Commissioner, Imphal can also issue permits to
tourists traveling by road from Imphal to Kohima and Dimapur.

Meghalaya

Meghalaya is the abode of clouds. The name ‘Meghalaya’ describes the climatic phenomenon
that brings torrents of rain to its mountainous terrain. It is also called ‘A Patch of Beauty and
Grace’ and is also known as Scotland of East. It is linked to Borail Range of mountains, an
offshoot of The Himalayas. The refreshing mountain breeze, whispering pines, exotic flora and
fauna make it one of the most preferred tourist destinations. Waterfalls in the state twist, turn and
disappear in jungles thus adding to the colourful landscape. People of Meghalaya belong to



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             84
mainly three tribes viz. Jaintias, Khasis and Garos. The society in the state is Matriarchal unlike
the rest of the country.

In some Jaintia and Garo villages, engravings of the figures of men and animals are found on the
walls. Near Jowai, the carvings of a lover Nad and his beloved are seen ehich evoke acclaim
even today for artistry and ingenuity of design.

The major tourist attractions in the state are Shillong Peak, Sohpetbneng Peak, Ward’s Lake,
Don Bosco Centre for Indigenous Cultures (DBCIC), Uranium Water Sports Complex, Botanical
garden, Lady Hydari Park, State Museum and Golf Course. In addition to these there is scope for
adventure tourism such as trekking etc.


   “The ropeway is also been planned near Cherrapunji and also initiatives in adventure tourism
   are to be taken up in near future. At Balgi (Meghalaya), a runway has already been built.”

         -   One of the top officials from Nagaland Industrial Development Corporation (AIDC)


Meghalaya is also opening to investment, on the similar lines of Assam. Due to better
connectivity, scenic tourist destinations and Government’s mindset towards PPP (public private
partnership), it appears to be a lucrative investment destination. A new air strip funded by AAI
(Airport Authority of India) is coming up in Meghalaya.


   “We are planning some hotels built up on Public-Private Partnership (PPP) model. We have
   taken up some properties for giving it on long term lease. We would be inviting tender for
   privatizing ‘Orchid Lake Resort’ at Barapani (owned by MTDC – Meghalaya Tourism
   Development Corporation). At Chizobhibra, the resort will be made and the operational aspect
   will be left for the private players.”
                                      -     One of the top officials at ‘The Secretariat – Meghalaya’



The state also boasts of possessing some of the most beautiful and picturesque waterfalls in the
country. Some of the prime waterfalls are,

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            85
Elephant falls; Spread eagle falls; Crinoline falls; Sweet falls; Noh Kalikai Falls; Mawsmai Falls;
Imilchang Dare; Bishop and Beadon Falls; Thum Falls; Weinia Falls; Langshiang falls;
Rong’bang Falls and Iale Falls.




                                  Figure 23: Natural Beauty of Meghalaya



Entry in Meghalaya

No permit is required by domestic tourists. Foreign tourists holding a valid visa of 180 days and
less can enter the state.

Mizoram

Mizoram with its soothing climate and exquisite natural beauty resting on the undulating hills
and greenery offers good scope for developing tourism Industry. Government will encourage and
promote this industry. The rivers, peaks, plains and the lakes are the treasures of Mizoram. It is
full of high ranges running from north to south covered by greenery throughout the year. The
scenic beauty of the hill ranges and river valleys during dry season, the rolling clouds mixed with
thundering sound followed by heavy rains, slowly moving across the hills and valleys, during
rainy season are the sights of unforgettable pleasure.

Entry in Mizoram

Domestic Tourists can be issued Inner Line Permits by any of the following Liaison Officers
located at



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           86
      •       Circular Road, Chanakyapuri, New Delhi- 110021 Phone- (011) 23016408/
              23010548/ 23015951
      •       24, Old Ballyguange Road, Calcutta- 700019 Phone- (033) 24757034/ 24757887/
              24756430
      •       Christian Basti, G. S. Road, Guwahati- 781005 Phone- (0361) 2564626/ 2541448
      •       Tripura Castle Road, Shillong- 793003 Phone- (03842) 220142/ 221197
      •       Sonai Road, Silchar- 788005 Phone- (03842) 220142/ 221197

For a group of four or more members Restricted Area Permit (RAP) can be obtained from the
Resident Commissioner, Mizoram House, New Delhi. They can also get the permit from the
Ministry of Home Affairs, Government of India, New Delhi.




  We are planning some hotels built up on Public-Private Partnership (PPP) model.
  We have taken up some properties and will give up those properties. There are two
  properties, one for resort and another for a convention centre.

                                                        - Ministry of Tourism, Mizoram




Nagaland

Nature could not have been kinder to Nagaland, sometimes referred to as the ‘Switzerland of the
East’. The exquisitely picturesque landscape, the vibrantly colourful sunrise and sunset, lush and
verdant flare, this is a land that represents aberrant beauty, moulded perfectly for a breath-taking
experience.

Blessed with salubrious climate throughout the year, it provides the right ambience for a quiet
get away from the hustle and bustle of city life.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            87
Life here is one long festival. Apart from the rich, incomparable traditional and cultural heritage
that is exclusive, Nagaland offers you a rejuvenating bonus of the cool refreshing mountain air,
and the dreamless sleep amidst the roaring sound of silence.

Nagas have a reputation for a warm-hearted hospitality, by nature; they are lovers of fun and
frolic.

Entry in Nagaland

Domestic Tourists require obtaining Inner Line Permits issued by the following authorities

          •   Deputy Resident Commissioner at Nagaland House, Delhi and Kolkata
          •   Assistant Resident Commissioner, Guwahati and Shillong
          •   Additional Deputy Commissioner, Kohima and Mokokchung

Foreign tourists require Restricted Area Permits from the Ministry of Home Affairs, Government
of India, South Block, New Delhi

Tripura is a mountainous land cleft by valleys of about ten rivers. Flat plains and warm humidity
make Tripura travelers’ dream destination.



Trends in Investment

Government of India attaches immense importance to the development of infrastructure in the
North-East region as it has huge potential for tourism. Despite the abundance of natural beauty,
snow capped peaks the flow of tourists to this region has been marginal due to the lack of
infrastructure. Accordingly there has been a continued thrust on the development and up-
gradation of various tourist facilities such as tourist accommodation, wayside amenities, budget
accommodation etc.

In order to tap the immense potential of the North East states, the Government of India has
planned to promote them as an investment destination and a paradise for tourism. The Ministry

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           88
of Tourism (MoT) is warming up to the region's ecological heritage and has sanctioned about Rs
300 crores, of which numerous projects are for the northeast region.

The ministry for Development of the North East Region (DONER) is offering potential
investors numerous attractive tax sops and other concessions on a decadal basis. On the other
hand, to enhance hospitality infrastructure, MoT has planned to promote the Bed & Breakfast
Scheme in these states.

The ministry for DONER had recently organized a conference in New York to showcase the
potential of the region in terms of tourism. Also, a major northeast trade and investment week
was organized in Bangkok last month, which elicited warm response from investors.

ITC’s Welcome Heritage plans to expand in the North-Eastern region as there are good heritage
properties in the region. It already has presence in Assam, Arunachal Pradesh and Meghalaya
and plans to expand to Kaziranga National Park in Assam.

Industrial Boards/ Bodies Promising investment in Tourism

In order to develop and promote tourism in the region, the Ministry of Tourism (MoT), India has
taken following steps

      •     In pursuance of PM's initiative for North East, a full-fledged Institute of Hotel
            Management and Catering Technology has been set up at Shillong.
      •     A chapter of Indian Institute of Tourism and Travel Management has been opened at
            Guwahati.
      •     The Food Craft Institute at Guwahati has been upgraded to the level of Institute of
            Hotel Management, Catering Technology and Applied Nutrition and the existing
            infrastructure is being expanded.
      •     The Department of Tourism has upgraded the Government of India Tourist Office,
            Guwahati from Director to Regional Director level. This will facilitate in speeding
            up the work of classification/re-classification of 1-3 star function hotels located in
            the North Eastern States which were earlier covered by the Regional Director,
            Government of India Tourist Office, Kolkata.
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          89
       •    A video film on tourist attractions for North East has been produced by Ministry of
            Tourism in order to give wide publicity to the region. This is being screened by Air
            India in their flights.
       •    North Eastern States are given a free booth in the world's largest Tourism Fair,
            International Tourism Mart, Berlin.
       •    Financial Assistance for promotion of fairs and festivals is also being provided to
            North Eastern States every year on continuing basis.
       •    North Eastern States are given a special focus in the Marketing Conferences of
            Overseas Offices of the Ministry of Tourism. All these overseas offices are giving
            due publicity to the North Eastern States for the promotion of tourism in the region.

4.3.2 Food Processing and Horticulture

The economy of the North Eastern states is mainly rural and agrarian. The region offers scope
for cultivation of a wide variety of agricultural crops because of its diversities in topography,
altitude and climatic conditions. These products are sold mainly in the local markets, and mostly
in the form of primary produce without significant value-addition.

The pattern of agricultural growth has remained uneven across regions and crops. The NER
continues to be a net importer of food grains even for its own consumption. In spite of covering
7.7% of the country’s total geographical area, NER produces only 1.5 % of the country’s total
food grain production. Agriculture provides livelihood support to 70 % of the population of
NER.

The extent of cultivable land in the NE region varies from state to state. Land is a critical
resource in many of the NE State, and availability and management of land for agricultural
activities are essential for raising the region’s overall agricultural production and productivity.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                 90
          State                Geographical Area                 Population (No.)        Ratio
                                        [Ha]
   Arunachal Pradesh                8374300.0                         1097968             7.63
         Assam                       7843800                          26655528            0.29
        Manipur                      2232700                          2166788             1.03
       Meghalaya                     2242900                          2318822             0.97
        Mizoram                      2108100                           888573             2.37
        Nagaland                     1657900                          1990036             0.83
         Sikkim                       709600                           540851             1.31
         Tripura                     1048600                          3199203             0.33
         All NE                     26217900.0                        38857769            0.67
        All India                   328726300                       1028610328            0.32
                        Table 26: Geographical Land to Man Ratio (Hectares/Person)
                                       Source : NER databank, NEDFi


The region’s agricultural system is predominantly traditional. The overall geographical land-to-
man ratio for the NE region (0.67 Hectares/Person) is much higher than the National average
(0.32 Hectares/Person). Among the NE State the geographical land-to-man ratio is highest in
Arunachal Pradesh (7.63 Hectares/Person) and lowest in Assam (0.29 Hectares/Person)

Technology mission for integrated development of horticulture in North-Eastern States

The horticulture sector, which includes fruits, vegetables, spices, plantation crops, floriculture,
medicinal and aromatic plants, cashew-nut, etc. has ample potential for development, as
compared to other crops, in the North Eastern States of India.


The development of NE region examined by various Commissions and Committees
recommended for integrated development of horticulture in a mission mode to foster rapid
growth of the region. Based on these recommendations a Centrally Sponsored Scheme on

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            91
Technology Mission for Integrated Development of Horticulture in North Eastern region
including Sikkim, was approved by EFC and CCEA, has been launched from 2001-02.




                         Figure 24: Graphical outline of the Technology Mission
                             Source : Dept of agriculture, Govt. of agriculture



The Technology Mission will have four Mini Missions:
   i) Mini Mission – I: Research Coordinated and implemented by ICAR,.
   ii) Mini Mission - II: Production and Productivity: Coordinated by DAC and implemented
          by the Agriculture / Horticulture Departments of the States.
   iii) Mini Mission - III: Post-harvest management, marketing and export: Coordinated by
          DAC and implemented by NHB, DMI, NCDC, NAFED and APEDA.
   iv) Mini Mission – IV: Processing: Coordinated and implemented by MFPI.



The list of the processing units covered under mini-mission IV of MoFPI, Govt. of India is as
under:-




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                     92
                                                                                       Amount Approved
   Processing Units in the NE States under Mini-Mission IV of
     Ministry of Food Processing Industries, Govt. of India
                                                                                           (Rs. in lakhs)
1. Setting up of Spice Oil and Oleoresin Unit at Byrnihat, Meghalaya by                        75.00
J.G. Spices Ltd.
2. Ginger processing unit at Byrnihat, Meghalaya- NERAMAC                                         50.00
3. Fruits & Vegetable Processing Unit, Meghalaya by Mansan Fruit                                  16.69
Products
4. Up gradation fruit juice center plant, Chhingchhip, Mizoram-                                   100.00
MIFCO, Aizwal
5. Up gradation of Food Processing Plant at Sairang, Mizoram- MIFCO,                              60.50
Aizwal
(Mizoram Food & Allied Industries Corporation Ltd)
6. Setting up of Fruit and Vegetable Processing Unit, Wangoi, Manipur                             33.22
by Voluntary Service Center
7. Setting up of Ginger Processing Unit, Imphal, East District, Manipur                           16.12
by United Development Agency
8. Post Harvest Infrastructure and cold chain for fruit processing-                               39.00
Community Development Society, Imphal
9. Passion Fruit Processing unit by Good Samaritan Social Service                                 256.25
Association, Punanamei, Mao, Senapati
Promotional Activities (NERAMAC)                                                                   1.76
                                   Total                                                          648.54
                    Table 27.2 : Processing Units in the NE States under Mini Mission IV scheme




According to the APEDA officials based out of Guwahati, investment potential coupled with
various government initiatives to promote export of horticulture and processed food like juices,
jams and jellies etc differentiate north eastern states like Assam, Meghalaya and Manipur from
the other states.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                       93
    “The perishable products can be collected at collection centers, which will then be
    transported to Guwahati, where they will be packaged and the cold chain starts from there.”

    “We have scheme for support in packaging and also a scheme for inland transport assistance
    which can be used for perishable products like banana, pineapple, oranges, cut flowers,
    guava, bamboo shoots that allows 90% of the assistance for transportation from any airport
    in North East to Kolkata and 50% subsidy for transport from North East to Mumbai or Delhi.
    If it’s to be sent through train from ICD to any port in India, then an assistance of Rs. 2/kg is
    provided. ”

                          -   One of the top officials at the APEDA office at Guwahati (Assam)




Arunachal Pradesh

The shifting cultivation which has come to be known as Jhuming mean collective farming
occupies the central position in Arunachal Pradesh in the field of agriculture. This is the form of
cultivation that sustains majority of the people in the area which is been practiced from earlier
days. Paddy, millet and maize are the major crops. The indigenous vegetables are sweet potatoes,
brinjal, ginger, chillies, pumpkin, cucumber, and local cowpea. Pine apple, oranges, lemon,
litchi, papaya, banana and peach walnut, almond etc are also grown in Arunachal Pradesh.

The table below shows the various crops cultivated in Arunachal Pradesh. The table shows that
citrus fruits are grown over maximum geographical area. Banana leads the pack in terms of yield
measured quintals/ hectare. Estimates for the year 2008-2009 show that the citrus fruits will be
cultivated over maximum area but pineapple will take lead in terms of yield.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             94
  Crop                   2006-2007                             2007-2008                             2008-2009
Fruit Crop   Area (in     Prod. (in     Yield      Area(in      Prod. (in     Yield      Area(in      Prod. (in     Yield
               lakh         MT)       (Qtl/hect)     lakh         MT)       (Qtl/hect)     lakh         MT)       (Qtl/hect)
             hectares)                             hectares)                             hectares)
 Apple        8554        12467         9.24        9067        13464         9.97        9611        14541        10.76
 Citrus      25509        33079         7.76       27040        35725         8.00       28662        38538         9.00
Pineapple     9468        43894        11.66       10036        47405        12.59       10638        51197        13.59
 Banana       4630        18024        16.32        4907        19466        16.50        5201        21023        16.60
 Walnut       3025          80          0.80        3206          86          1.00        3398          102         1.60
  Other       6698        21332         7.47        7100        23038         8.06        7526        24881         8.70
  fruits
  Total      57884        128876        8.77       61356        139184        9.35       65036        150282       10.04
 Spices
  Large       2898          707         0.70        3072          764         0.80        3256          825         1.00
Cardamom
  Black        863          203         1.40         915          219         2.00         970          237         2.50
 pepper
  Other       8386        40641        11.00        8888        43892        11.50        9421        47403        12.00
 spices
  Total      12147        41551         4.36       12875        44875         4.76       13647        48465         5.16
 Grand       70031        170427          -        74231        184059          -        78683        198747          -
  Total
                          Table 28: Area cultivated, Production and Productivity from 05-09
                                Source : Dept. of agriculture, Govt. of Arunachal Pradesh


 Undulating topography and varied agro-climatic conditions offer vast potential for the
 development of Horticulture for growing varieties of tropical, sub-tropical and temperate fruits,
 vegetable including off season vegetables), spices, aromatic and medicinal plants flowers and
 mushroom. The fruits being perennial in nature help in checking soil erosion and provide high


 INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                                 95
density green cover to the soil. These trees can also be planted in retrieve soil which provide
potential alternative for control of shifting cultivation.

Horticulture is the backbone and future of rural economy. There are several state and centrally
sponsored schemes to promote food processing and post harvesting initiatives. The same are
mentioned as under:-

                                             State Schemes
          1             Control of shifting cultivation.
          2             Maintenance of Farm of Nurseries.
          3             Kitchen gardening and Floriculture.
          4             Horticulture Training & Education.
          5             Horticulture Fair & Exhibition.
          6             Mushroom Development Programme.
          7             Horticulture Information.
          8             Fruit Preservation.
          9             Kiwi Cultivation.
         10             Incentives to Farmers are some of the programmes that are being
                        implemented for the development of Horticulture in state.
                               Table 29: Measures taken to restrain land waste



                                   Centrally Sponsored Schemes

          1                           Integrated Programme for development of Spices.
          2                                          Commercial Floriculture
          3                                            Mushroom cultivation
          4                                     Integrated Development of Fruits
          5                   Development of Horticulture through Plasticulture Intervention
          6                                  Coconut Development Programme etc.
                         Table 30: Some schemes introduced by the central government
                            Source : Dept. of agriculture, Govt. of Arunachal Pradesh



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          96
Profiles of agro based industries for Arunachal Pradesh

The major agriculture based industries for Arunachal Pradesh are as follows:

   •   Sugar Mill
   •   Alcohol based on molasses
   •   Dehydrated Ginger
   •   Frozen Vegetables
   •   Starch from Maize

Profiles of horticulture based industries for Arunachal Pradesh

           Industry                             Location                            Technical know-how

 Mushroom Processing Unit           Itanagar, Bomdila, Tawang,               Processing of mushroom: To
                                            Zero, Daporijo                   be supplied by the supplier of
                                                                               the main plant. (training of
                                                                             personnel and supply of plant
                                                                               operation and maintenance
                                                                                         manual)
        Tissue Culture                Itanagar, Tawang, Along                  Not available indigenously
   Cut flower Green House             Itanagar, Zero, Daporijo,                Not available indigenously
            Project                              Along.


                            Table 31: Horticultural based industries in the state
                                    Sources: Tata Consultancy Services


Vast tracts of hill slopes & favourable climatic condition present an immense potential for
plantation crops like tea, coffee and rubber in the state of Arunachal Pradesh. Tea is the most
important non-food crop of the North Eastern (NE) region. Assam & Tripura are the largest
producers of tea in the region and the NE region accounts for more than 50% of the total tea
produced in the country. Tea cultivation in Arunachal Pradesh is of recent origin. Darjeeling
variety of tea is found to grow well in the hill slopes of Arunachal Pradesh. The lone tea estate in
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                     97
Arunachal (Siang tea, Pasighat) is a success story and has been operating profitably. As
demonstrated by the pilot projects under taken by state Forest department coffee plantation has
tremendous potential in the state and private sector participation should be encouraged in this
sector. Rubber plantation is another area of investment as is being done in other NE states like
Manipur (Jiribum) & Tripura Brazilian variety of rubber tree is found suitable for north eastern
region.

Bought leaf processing units could be started where several small growers, growing tea in their
individual land holdings could supply their leaves. Similar types of small tea gardens have
actually been started in Mokokchung area of Nagaland. NEDFi has formally contacted Tocklai
Tea Research Centre, Jorhat recently for conducting a study and let us know about the economic
size of garden required for hill states, investment required etc.

Existence of diverse agro-climatic conditions, topographical and altitudinal variation has
facilitated the growth of several fruits, vegetables and spices in Arunachal Pradesh. The major
agriculture based industries in the state are as follows

   •      Apple
   •      Pineapple
   •      Orange
   •      Banana

Other commercial crops which have potential for cultivation and further value addition are
ginger, oil seed, turmeric, potato, etc. The industries with major production are as follows

   •      Maize
   •      Oilseed
   •      Ginger
   •      Sugarcane
   •      Turmeric



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          98
In the absence of proper marketing networks and cold storage facilities private traders at
throwaway prices pick up the horticulture producers. Growers have to succumb to distress selling
and sometimes they get as low as 15% of the consumer’s rupee. One fruit-processing unit was
set up by the state govt. Nigmoi near along that has gone sick. TCS (Tata Consultancy Services)
Report has assigned unprofessional management practices and lack of marketing skills as the
main reason for poor health of the unit. NEDFi can encourage private entrepreneurs to set up
fruit processing plants, ginger dehydration units and cold storage in the state.


Assam

The economy of Assam is predominantly an agrarian economy. There is ample scope for
development particularly in the rural areas for processing of cereals, fruits, vegetables, milk,
meat and other agricultural products like Jute, Ramie etc. The Government will encourage
development of Agro and Food processing industries by providing possible basic infrastructure
to the industries. The Government of Assam has encouraged setting up of Fruit Processing,
Vegetable Processing, Spice Processing, Aquaculture; Horticulture based projects in the State.



   “We have dedicated Food Parks for attracting investment in Food Processing. Banana
   export is 40,000 tonne from a place at the Assam Meghalaya border. A small park has
   been put up in 10-12 acres with labs and common facilities been put up. This park is
   especially for bananas but other fruits such as pineapple, oranges etc can also be
   processed . An integrated food park of 40 acres has been set up 50-60 kilometers to the
   west of Guwahati. Facilities of cold storage have also been provided. If someone wants
   to invest in Food Processing sector, that is a possible area.

                                                                     - Chairman AIDC, Assam




Assam Government has taken necessary action to motivate the investors for commercial
exploitation and setting up of projects on Medicinal herbs, Aromatic plants, Rubber plantation
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            99
and processing, Small Tea garden etc. The Government of Assam is very much aware about the
viability of setting up of Industries like diversified Jute products and Ramie based Industries in
Assam by prospective entrepreneurs. The Government of Assam will provide necessary support
for setting up of such units in the State. About 77% of Assam’s workforce is engaged in
agriculture and allied activities contributing roughly 40% to the State GDP. Roughly 40% of the
total area is cultivated.

Horticulture & Spices

The agro-climatic condition of the state favour the growth of a variety of fruit and vegetables/
spices including coconut banana, pineapple, orange, ginger, turmeric chillies, potatoes etc.

Some of the important horticultural/ spices producing fruits are as: Pineapple, Citrus Fruits,
Banana, Litchi, Guava, Papaya, Mango, Jackfruit, Chilli, Peaches, Plums, Pears, Apples,
Apricots, Walnuts, Areca nuts and a variety of vegetables. Some of the important spice crops are
Ginger, Turmeric, Black Pepper, Cardamom and Cinnamon. The other indigenous crops are
Sericulture, Aromatic Plants, Medicinal Plants, Orchids and Ramie fibre.


   “The best place to setup a Food Processing unit is IID (Integrated Infrastructure
   Development Centers) Dhaulgaon, located about 100 kilometers to the North of Guwahati
   The fruits and horticulture produce is available in large quantities. one can get fruits from
   border of Bhutan also. It’s a 40 acre park which is 50% been occupied. The Nilon’s
   pickles have put up a plant which is selling throughout the country. A lot of District
   Manufacturers are also there. A Bakery manufacturing company from USA is also there.”

                                  - One of the top official of APEDA regional office, Assam




The State Govt. has already initiated measures to increase the productivity of the agricultural
sector, like increasing the area under agriculture through double cropping, widening the
irrigation network, undertaking flood control, seed procurement, training and development of

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              100
farmers etc. The state government has also encourages the increasing Entrepreneurial ventures in
the state.

Cold Chain Infrastructure and Packaging Unit

The Government of Assam in association with APEDA has set up cold storages near the food
parks and near the point of transit i.e. at Guwahati airport.


   “A cold storage facility is coming up near Salegaon, about 70 kms from Guwahati, which
   is close to Dispur. Also at 3 km from project site, at Khalpatia cold storage is present.
   About 5 kms from Guwahati, at Sangsadi a cold storage is present which can be leased.
   There is a cold storage at airport also which was funded by APEDA. An agricultural cold
   storage is also being developed at Khanapat in Guwahati, which is owned by the
   government.”

                                                                 - Chairman AIDC, Assam



A cold chain is funded by APEDA. It is at Guwahati Airport. The idea is to set up a cold storage
called Walking Type Cold Storage, with a capacity of 15 metric tonne. It is handled by Guwahati
Airport. But as newer varieties of perishable cargo has been coming up including cut flowers
even from Mizoram, APEDA is negotiating with Airport Authority, Delhi on those lines. It has
identified other Airports in other North East states. From Mizopur, they are transported from
Ijour to Kolkata to Bombay to International places. It has got many nodal points. “Ropar
Exports” is doing business of cutting flowers, and is based out of Guwahati. Various certifying
agencies like DBDY and SGS are also present in the region. SGS has already exported a
consignment of certified Joha rice, an aromatic rice. Government of Assam is also looking
forward to spices like Ginger.

In order to get a plot in any food parks or IIPs, the entrepreneur should contact some
organizations like AIDC and AIIDC which are the facilitating bodies. The process is single
window, and you go to any of the organization and the plot can be taken up.
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          101
   “The rates in these food parks vary from Rs. 200 – 400 /sq. metres is one time payment
   and a maintenance charge of Rs. 2/sq. metre. A 3000 sq. metre plot in about one time
   down payment will cost about just Rs. 6 - 8 lakhs… Investment can be in Ready-to-eat
   products or in Fruit Processing industries. We are now planning a big Agri Hub near
   Guwahati with some food processing facilities near Guwahati. But the project is yet to be
   started.”

                                                                   - Chairman AIDC, Assam




This pack house will be based out of Guwahati which will be supplied from different collection
centers. The perishable products can be collected at collection centers, which will then be
transported to Guwahati, where they will be packaged and the cold chain starts from there. It will
be setup at EPIP (Export Promotion Industrial Park). Adjacent to that will be Inland Container
Depot from where they can be transported. APEDA has scheme for support in packaging and
also a scheme for inland transport assistance, which can be used for perishable products like,
banana, pineapple, oranges, cut flowers, guava, bamboo shoots, then 90% assistance for transport
from any airport in North East to Calcutta and 50% subsidy for transport from North East to
Bombay or Delhi. If it’s to be sent through train from ICD to any port in India, then an assistance
of Rs. 2/kg is provided.

For farmer, who doesn’t use any fertilizers, but use cow-dung APEDA expect the backhouse to
be ready by next year. It will be setup in Export Promotion Industrial Park. It is just across the
bridge on Brahmaputra, in Guwahati. It will have cold storage facilities, basically for ginger but
flowers can also be kept there. The packaging of other vegetables is also possible at this place.
But airports have got better facilities for airport. No further processing is been done except
packaging and cold storage.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          102
Tea Industry

Assam is the world's single largest tea growing region, producing more than 1,500,000 pounds of
tea annually. Assam has a first flush and a second flush tea. The first flush tea has a rich and
fresh aroma, while the second flush produces the famous tippy tea (with a golden colour leaf).
The golden tip presents in Assam tea makes it sweet and smooth and is more popular throughout
the World. Due to the rainfall of 100-150 inches per year, it helps the tea plantation.

Assam's black tea is divided into two categories (1) orthodox and (2) CTC (Crush, Tear and
Curl). There are nearly 188 major tea estates in Assam managed by different private companies.
The following major tea companies are :

                    Company                                            Location

                    Tata Tea                            Nagaon, Sivsagar, Darang, Dibrugarh

           Brooke Bond Lipton India                                   Dibrugarh

               Mcleod Russell India                               Sonitpur, Sivsagar

          George Williamson (Assam)                               Darang, Dibrugarh

                Bishnauth Tea Co                                        Darang

                Assam Company                            Dibrugarh, Nagaon, Jorhat, Sivsagar

                   Warren Tea                                         Dibrugarh

                 AFT Industries                                   Darang, Dibrugarh

                  Assam Brooke                                          Darang

         B & A Plantation & Industries                                  Jorhat

           Dhunseri Tea & Industries                              Dibrugarh, Darang

             Bengal Tea & Fabrics                           Sivsagar, Cachar, Lakhimpur

           Tezpore Tea & Company                                        Darang

                  Goodricke Tea                                         Darang


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          103
              Jayshree Tea & Industries                     Sivsagar, Cachar, Jorhat, Dibrugarh, Nagoan
                            Table 32: Important tea companies operating in the state
                             Source : Dept. of agriculture, Govt. of Arunachal Pradesh




The 74% of state's population is engaged in agriculture and allied industries. Due to easy
availability of products and fruits, several agro based industries flourished in Assam.

90% of the population in Assam is rural, with 74% dependent on agrarian and allied activities.
The compound annual rate of growth in this sector has been 2.01% for the entire seventh plan
period. The principal crop under cultivation (constituting 67% of gross cropped area) is rice. The
area under major crops is as follows –

                           Crop                                                      Area Covered (%)
                          Cereals                                                          80.8
                          Fibres                                                           9.6
                         Oilseeds                                                          3.3
                          Pulses                                                           3.1
                       Misc. Crops                                                         3.2
                                  Table 33: Important crops grown in the state
                                  Dept. of agriculture, Govt. of Arunachal Pradesh


The area under horticultural crops cannot be specified as most of it is grown on non-commercial
lines in homesteads. There is potential (yet to be tapped) for rapid growth in many areas
(indicated below) which can result in this sector providing vital inputs for agro-based and other
industries.


Manipur

Government of Manipur is looking forward to explore the resources available towards the
development of Food Processing Industries in the state as Food Processing Sector plays a
significant supportive role in diversification and commercialization of Agriculture, Horticulture,
Fisheries, Poultry, Animal husbandry and Forest, improving value addition in the agricultural

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                   104
produce, employment generation and providing income and production of agro-food products for
export.

Prospective mobilization of this sector is mainly concerned with the raw material resources and
its potential for future expansion, improvement of infrastructure, investment ability and up-
gradation of technology

The existing area under cultivation of different crops in Manipur is 2,85,000 hectares as against
the available potential area of 3,25,500 hectares. Agriculture plays a vital role as it is the main
backbone of the State economy till today. The agriculture is mainly dependent on monsoon
however around 28.49% of area under cultivation is irrigated by Canals. Moreover with a range
of natural conditions and varied soil and topography, the state produces sizeable quantity of
Paddy, Wheat, Maize, Pulses, Oilseeds such as Mustard, groundnut, Soybeans, Sunflower,
Ginger, Turmeric and Fruits like Pineapple, Lime/Lemon, Banana, Orange, Papaya, Plum and
vegetables like, Cauliflower, Cabbage, Tomato, Pea, Squash, Carrot, Pumpkin, etc. The existing
area under fruits and vegetable crop is about 1.08% of the total geographical area and with such
suitable agro-climatic conditions; the state still has lots of potential areas on the foot hills, mild
hill slopes and along the river banks.

Manipur has vast potential for commercial plantation of citrus fruits like lemon, lime, orange,
grapes etc. and Pineapple, Banana, Passion fruit, temperate fruits and locally available fruits
(amla, olive, figs, mandrine and Heirukokthong etc.). The quality of the pineapple (Q-variety) so
available in Manipur has distinctive taste and flavour.




So far, identified potential area is estimated at 2,77,000 Hectares. Out of this about 24,000
Hectares are covered under different crops. The area and production in respect of some of the
fruits in the State are given below:




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             105
                Crops                   2000-01                  2001-02

                                 Area         Prod.       Area         Prod.
                                ‘000 ha.     ‘000 MT     ‘000 ha.     ‘000 MT
              FRUITS
              Pineapple          10.02        69.14       10.08        69.43
               Banana            1.65         13.01       1.66         13.11
               Papaya            1.87         10.31       1.89         10.24
               Orange            0.93             3.70    0.94             3.76
               Mango             0.19             0.95    0.20             1.10
             Pear/peach          0.35             4.11    0.64             3.86
                Guava            0.72             2.46    0.73             2.48
               Lemon             1.13             5.14    1.13             5.17
              Jack fruits        0.29             1.16    0.30             1.20
               Others            7.30             8.67    7.30             8.81
           VEGETABLES
             Cauliflower         1.01         10.10       1.01         10.10
              Cabbage            1.32         15.84       1.32         15.84
               Tomato            0.50             4.12    0.51             4.16
                 Pea             1.01             5.81    1.01             5.82
               Radish            0.23             2.30    0.23             2.35
                Carrot           0.28             2.03    0.28             2.07
             French Bean         0.61             1.86    0.62             1.89
         Okra / Lady’s finger    0.71             2.34    0.72             2.38
               Brinjal           0.31             1.63    0.32             1.65
              Knol-khol          0.29             1.50    0.29             1.50
               Others            0.31             0.88    0.32             0.89
              SPICES


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                             106
                   Chilli                    7.01            22.78             7.03         23.06
                   Ginger                    1.10            11.00             1.11         11.14
                   Onion                     0.53             5.30             0.54         5.43
                 Turmeric                    0.32             3.78             0.32         3.78
                      Table 34: Production of various horticultural products in the state
                           Source: Horticulture Department, Government of Manipur.


The State Government is promoting the investment in food processing by setting up food parks
near the source of the fruits and horticulture produce.


  “A private sector Food Processing unit is coming up in Mhao in Manipur which is 35
  kilometers from Kohima. It’s called Exotic Fruit Juices Private Limited. It processes Asean
  fuits and oranges. Its cost is seven crore.”

                                            - One of the top official from APEDA regional office


Mushrooms

A new thrust area is cultivation of mushrooms. In the world scenario, it is generally seen that
countries with a weak economy tended towards the mushroom industries for export since
mushrooms provide “hard” currencies. Mushrooms also have a low gestation period ensuring
fast returns in terms of income and realization of investments. In India during the past few years
with the liberalization of foreign investments, it has been seen that an increasing number of
multinational institutions have voiced their willingness to invest in mushroom production units in
the country with 100% export oriented units. There is, thus vast scope for commercial cultivation
of mushrooms in India and especially in the North-East which offers ideal weather conditions for
mushroom cultivation.

The State is having favourable climatic conditions for growing mushrooms. Wild varieties of
mushrooms grow abundantly and some of such mushrooms are edible. Pleurotus and Agaricus
mushroom varieties can be grown throughout the year in this State. Similarly other varieties such
as, Auricularia Auricula (UCHINA), Schizphyllum commune (KANGLAYEN), Letimula

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                               107
edodes (THANGJIYEN), Volvariella SPP (CHARUYEN), etc. can also be cultivated. Substrates
for cultivation of mushrooms are available locally except few chemicals that are to be procured
from other states. Few varieties, which can be cultivated at normal conditions are given below:



               Varieties                                                   Season
      Agaricus bisporus (Button                                     December - March
             Mushrooms)
          Agaricus bitorquis                               February - April/August-October
         Pleurotus Flabellatus                                          April - July
        Pleurotus Sajor - Caju                                     August - November
          Pleurotus Ostreatus                                       December - March
                       Table 35: Important varieties and season of mushroom cultivation
                                  Source : Horticultural Dept., Govt. of Manipur


Tea

Tea grows wild in this State since time immemorial. However, plantation of tea for commercial
production has been started from the year 1981-82 by Manipur Plantation Crops Corporation
Limited in Jiribam.

The targeted project area of tea plantation is 425 ha. out of which till the end of 1996 a
substantive area of 260 ha. has already been covered. The yield of green tea leaf since inception
upto 30th June, 1997 was 200 M.T. approx. A target of 500 M.T. of green tea leaf is attempted
during the current year.

Bamboo and Bamboo Shoots

Bamboos although not cultivated systematically, grow in wild abundantly along the low altitude
hill areas where the rainfall is high.

The major species of bamboo which are available in the bamboo forest are given below:



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                         108
            Botanical Name                                                 Local Name
         Bambusa arundinacea                                                 Saneibi
            Bambusa pallida                                                 Kal sundi
       Dendrocalamus giganteus                                              Meiribob
       Dendrocalamus hamiltonii                                       Wanap/unap/pecha
         Melocana bambusoides                                              Moubi/muli
          Teinostachya dulooa                                                 Dulu
             Bambusa tulda                                                   Utang
                       Table 36: Type and location of bamoo plants grown in the state

                                      Source: Forest Department, Manipur


The available resources of bamboo and bamboo shoots are yet to be commercially utilised fully
in Manipur. It is mainly consumed at present in the construction of houses, mat and baskets etc.
About 20-30 MT of bamboo shoots are consumed annually for the production of canned bamboo
shoots. Keeping in view the existing resources and its utilisation, there is still a good scope for
commercial utilisation of bamboo in the following sectors:

The average food value of bamboo shoot is given below:

                 Food Value                                                    Fraction
                   Moisture                                                    88.80 %
                    Protein                                                        3.90 %
                      Fat                                                          0.50%
                   Minerals                                                        1.10%
                Carbohydrates                                                      5.70%
                Calorific value                                              43.00 Kcal.
                              Table 37: Fraction of various components in Bamboo
                                       Source :Forest Department, Manipur




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          109
Identification of Feasible Industrial Projects in Manipur

On the basis of the various agro-horticultural resources available in Manipur, the North Eastern
Industrial consultants (NECON) had identified the following feasible Food Processing Industries
based on the locally available raw materials:

                     Projects for                                         Input raw materials
            Fruit Juice concentration                                  Pineapple, Orange, Lemon
        Pectin and allied citrus products                               Peels of Orange, Lemon
         Consumers pack of fruit juice                                        Any fruit juice
                    Tomato Paste                                                     Tomato
                 Banana/Guava pulp                                            Banana, Guava
  Pineapple slices, canned fruits, Pear, Peach,                 Pear, Peach, Plum, Pineapple, Orange
                   Plum, fresh pack
                     Potato Chips                                                    Potato
                   Papain (Papaya)                                                   Papaya
                  Modern Rice Mill                                                   Paddy
                 Ginger oil extraction                                               Ginger
    Mushroom cultivation cum processing                                          Mushroom
  Preservation and canning of bamboo shoots                                   Bamboo shoots
             Dry Fish Fermentation                         Dry Fish (To be imported from neighbouring
                                                                            States like Assam)
                                Table 38: Various projects undertaken in the state



Meghalaya

The potential for Agro-based industries in the state of Meghalaya is very high. The state
produces substantial quantities of oranges, peaches, pineapples, pears, guavas, plums and
bananas of superb variety. It also grows plenty of potatoes, tapioca, bay leaves, ginger, maize
and jackfruit.


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                  110
Meghalaya's turmeric, particularly the variety that is grown in Shangpung in the Jaintia Hills, is
considered the best in the world and its curcumine content is as high as 7.5%.

Plantation crops like coffee, rubber, black pepper and arecanut are also becoming important
products. A major breakthrough has been made in tea cultivation and tea gardens have come up
in various parts of the State. One of the areas in which there is tremendous potential for
investment and development is food processing.

Among the other agro-based industries, The Meghalaya Jute Manufacturing Company produces
jute goods. The potential for Agro-based industries in the state of Meghalaya is very high. The
state produces substantial quantities of oranges, peaches, pineapples, pears, guavas, plums and
bananas of superb variety. It also grows plenty of potatoes, tapioca, bay leaves, ginger, maize
and jackfruit.

One of the areas in which there is tremendous potential for investment and development is food
processing. There is ample scope for setting up a large scale fruit processing unit.
Small Scale Industries.

It may be mentioned that there is enough potential for setting up a starch based processing unit in
the State. In the small sector there are a number of small industries viz. bakeries, breweries, saw
mills, metal works, rice and flour mills, furniture making, iron and steel fabrication, candle
making. In addition there are cottage industries like weaving, cotton ginning, spice making,
bamboo and cane works, tailoring and knitting. There are about 200 registered small Scale
Industrial Units in the State. This number is gradually on the rise, providing employment
opportunities, particularly to the educated, unemployed youths in the State.

Meghalaya grows plenty of potatoes during summer and winter and produces little over 1.19
lakh metric tons of potatoes. Turmeric, particularly the Shangpung variety is grown, which has
its curcurmine content as high as 7.5% substantial quantities of oranges, pineapples, peaches,
pears, plums, guavas and bananas are grown. Except for two departmental demonstration units
and a food processing unit of 400 MT. capacities, there is no fruit processing industry. Even
these three units suffer from lack of containers and high cost of transportation. Tea plantation is
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          111
also being experimented in the state and as the tea is grown in relatively high altitudes; its quality
is similar to the Darjeeling tea.

Meghalaya has a high percentage of meat consuming population and the climate is congenial for
animal husbandry like rearing of cattle, pigs, goats and poultry. In fact in a survey conducted by
NEC, it is estimated that the meat products consumed in the NE region are alone worth Rs.1000
crores per annum.

Horticulture & Agro based industry

The potential for agro-based industries in the state of Meghalaya is literally prodigious. The state
produces substantial and rich quantities and rich quantities of oranges, peaches, pineapples,
pears, guavas, plums, and bananas of superb table variety. It also grows plenty of potatoes,
tapioca, bay leaves, ginger, maize and jackfruit.

Meghalaya’s turmeric, particularly the variety that is grown in Shangpung in the Jaintia Hills, is
considered the best in the world in its curcumine content as high as 7.5%. It may be mentioned
that there is enough potential for setting up a starch based processing unit in the state.


   “MIDC has signed a Memorandum of Understanding with Mine Engineering of Yugoslavia
   and Goetze (India) Ltd. covering identification of suitable processing unit in Meghalaya for
   storing, processing and preservation of locally available fruits and vegetables like oranges,
   pineapples, etc. There are two small-scale fruit preservations units run departmentally, located
   at Shillong and Dainadubi.”

      -   One of the top officials from Meghalaya Industrial Development Corporation (MIDC)




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                             112
  Mizoram

  Agriculture is the mainstay of the people of Mizoram. More than 70% of the total population is
  engaged in Agriculture. The age old practice of Jhum cultivation is carried out annually by a
  large number of people living in rural areas. The climatic condition in the state with well
  distributed rainfall of 1900mm to 3000mm spread over eight to ten months in the year and
  location in tropic and temperate zone with various soil types have contributed to the occurrence
  of a wide spectrum of rich and varied flora and fauna. These natural features and resources also
  offer opportunities for growing a variety of horticultural crops.

  Organic Varieties

  Use of fertilizer and pesticides in agriculture and horticulture fields in Mizoram is almost non-
  existing. As such, all agri-horticulture output of Mizoram are organic produces of very high-
  value in national and international market. Out of the cultivable area, potential area for
  horticultural activities is found to be 6.31 lakh hectares, which consist of gentle to moderate
  slope. Out of this potential area, the area under Horticulture crops during 1998 to 1999 as
  recorded is about 46,000 hectares which is only 7.29% of potential area for horticulture.
  Therefore, the scope and potential for expanding the activities of horticulture is enormous. The
  crops mentioned below have tremendous potentials for marketing outside the State.

  Category                                                    Varieties
    Fruit        Mandarin Orange, Passion Fruit, Pineapple, Hatkora, Banana and Papaya
  Vegetable      Tomato, Brinjal, Bean, Pea and Iskut (Chow Chow)
   Spices        Bird’s eye chillies, Garlic, Ginger, turmeric, Black Pepper,Cardamom and Betelvine.
Root and tuber   Potato, Sweet Potato and Colocasia.
  Plantation     Tung, Coffee, Coconut and Arecanut.
                              Table 39: Various varieties of crops grown in the state
                            Source: Department. of Agriculture, Government of Mizoram




  INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                        113
Agencies which deal with horticulture produces and processing are:
   •   Department of Trade and Commerce, Government of Mizoram.
   •   The Mizoram Agriculture Marketing Corporation Ltd. (MAMCO), Government of
       Mizoram undertaking.
   •   The Mizoram food and Allied Industries Corporation Ltd. (MIFCO) Government of
       Mizoram undertaking.
   •   Khadi and village Industries (KVI) Boards, Government of Mizoram.
   •   NGO eg. Mizoram Hmeithai Association (MHA), Mizoram Iskut Growers Association,
       Zo International etc.

Potential for Various Agro-Horti Produces
Grape Processing :

              Presently Grape is grown in Mizoram at small scale.

              Mizoram climatic condition is suitable for wine grade Grapes

              The success of grape growers in Mizoram proves investment potential

              Large scale grape cultivation is a potential investment

              Production of wine is a potential investment

              Transportation and manpower cost is cheap

              Mizoram Govt. can provide land for grape cultivation and winery on lease basis

              Return on Investment can be ten times




Turmeric Plantation & Processing :

       Diversified products

              Dried Whole Turmeric


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                      114
              Dried Powder Turmeric

              Curcumin Extract

       Value-Added Potentials

              Cosmetic product

              Pharmaceutical product

              Colour Extract for colouring food items

Agri -Export Zone (AEZ) for Passion Fruit :

   Area of Concern

              Production & Quality Enhancement

              Post-harvest Management

              Value Addition

              Export Promotion and Management

Targets/Expectations

              Private Sector investments in AEZ

              Productivity enhancement up to 10 Metric Tones per Hectare Area

              Rs.10.7 Crores additional income to the state within a time span of 10 Years

              Export target is 250 Metric Tones for Short Term (2-3 Years), 500 Metric Tones
              for Medium Term (5 Years) and 1,000 Metric Tones for Long Term (10 Years)

Sesame

Sesamum (Chhawhchhi) is one of the most important edible oil seeds cultivated in Mizoram. It is
grown as mixed crops in Jhum land. The prospect for its cultivation has vast potential in

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                        115
Mizoram. The total area and production of Sesamum in Mizoram since last two years are as
follows.
                Year                                 Area (Ha.)                       Production (MT)
            2000-2001                                    3791                             2047.00
            2001-2002                                    3987                             2141.00
                                  Table 40: Production of sesame in the state
                          Source: Department. of Agriculture, Government of Mizoram


Sesamum is usually rich in oil (50%) and protein (18-20%). A 100gm of seed provide 592
calories. Sesamum produced in Mizoram are mainly marketed to Assam. Traders use to collect
the produce from farmers and carry to nearby market i.e. at Karimganj or Silchar. A Sesamum is
a short-gestation crop. The quantity of the production can be increased or decreased according to
demand.

Cotton

Cotton is the most important fibre crop cultivated in Mizoram. It is sown as mixed crop in Jhum
land. It is grown mainly in the Western belt of Mizoram. There is vast potential for cultivation of
cotton in Mizoram. The total area and production of Cotton in Mizoram during the last two
years are indicated below:

               Year                                  Area (Ha.)                       Production (MT)
            2000-2001                                     483                              210
            2001-2002                                     214                              619
                                  Table 41: Production of cotton in the state
                          Source: Department of Agriculture, Government of Mizoram


At present the utilization of cotton in Mizoram is concentrated only for making of quilts, pillows,
cushions etc as there is no cottage industry for other purposes like making threads etc.

Tung

Tung (Aleurites Montana) is seen all over Mizoram. Tung is generally grown in homestead and
garden lands in a scattered manner. Sometimes, it is grown in jhum lands in compact blocks
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                               116
having 275 plants per ha. The Tung oil is used largely in paint industry and is considered as the
best of the available oils in India. At present, castor, linseed and other oils are generally used in
the paint industry and Tung oil could easily replace the other oils used by the industry. At
present, there are two Tung oil extraction units near Aizawl. The oilcakes can be used as
fertiliser for the fields. Tung oil is marketed at the rate of Rs.40 per kg ex-factory. Tung oil is
chiefly imported from China. Given the right technology, Tung oil extraction in Mizoram can be
very profitable as an item of import-substitution. There is an immense scope for Tung cultivation
in Mizoram.

Orchids

Mizoram has a wide spectrum of orchids growing from the lower elevations to the high hills. The
Orchids grown in the high hills fetch a good price in the market at Delhi and Calcutta. More than
200 varieties of Orchids have been identified in Mizoram till now. In view of the right agro-
climatic conditions prevailing in Mizoram, there is an immense potential growing Orchids for
large scale commercial purposes.

Floriculture for Rose:

 Plus Points

               The normal climatic condition of Mizoram is ideal for cultivation of roses at a
               large scale, reducing the cost of investment

               Good scope for large scale cultivation

               The Indian market demand has grown up to 50% of the previous year

               Current transaction on rose alone is 729 million Euros.

Floriculture for Rose:

 Target/Expected Outcome

               Recognition Mizoram as a leading exporter of Rose

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            117
                Floriculture Technology improvement

                On-line auction and direct shipment of Roses through e-commerce

Coffee

The climatic conditions of the mid-hill ranges of Mizoram with high rainfall and sufficient
warmth almost throughout the year coupled with fertile, well drained, mildly acidic soil have
been found to be congenial for successful cultivation of coffee. Coffee plantation can play an
important role in the state of Mizoram. A very low gestation period of two years and the simple
on farm processing of the produce are the favourable factors for large scale cultivation in the
State. In addition, coffee crop favourably combines in the field with other economic crops like
black pepper, mandarin orange, jack, etc., and good sustained income from these crops also can
be got without affecting the performance of coffee.        Since coffee based cropping system
promises higher economic return for the farmers on a permanent basis, the Government of
Mizoram has been proposed to establish coffee plantations in an area of 10,000 hectares over a
period of 10 years.

Tea

The tea produced in Mizoram has a distinct touch of quality and flavour similar to teas grown in
high altitudes like the Nilgiris and Darjeeling. Biate has the largest area under tea, followed by
Ngopa, Khawdungsei, NE Bualpui, Pawlrang, Thungvei. The tea estates are managed by co-
operatives. The Government of Mizoram, Industries Department, has decided to concentrate
only on Biate area for intensive cultivation and development of tea. There is a scope of setting up
a mini tea processing plant at Biate in collaboration with the local cooperatives. The total
investment will be in the region of Rs. 150 lakhs. Land may be taken on long-term lease from the
cooperatives.

Bird-eye chilly

Mizoram is famous for bird-eye chilly, which is a prized-item in spices market abroad. This is a
short-gestation crops and the yield can be increased within a matter of a year or two.
INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          118
Nagaland

Presently, the agriculture produce of the State is confined to consumption and not for
commercial purpose. The agriculture and allied sectors in Nagaland offer good inputs for
development of a host of industries which could include: Floriculture; Horticulture; Rubber
plantation and allied industries; Sericulture; Tea cultivation and processing; Bamboo shoot
preservation; Mushroom cultivation and processing; Piggery; Poultry; etc.


  “In Nagaland, Food processing industry is one of them which have maximum potential to
  grow. Also, Cement industry also has the potential to grow as we have few deposits of lime
  stone in the bordering areas of Myanmar. Bamboo industry cannot be ignored production of
  bamboo is quiet high in our state.”
        -   One of the top officials from Nagaland Industrial Development Corporation (AIDC)




Agro-based Industries
The economy of Nagaland is primarily agrarian. However, agro-based industries excepting for
rice mills, oil mills, small bakeries, food-processing units and a couple of flour mills are
conspicuous by their absence. The industrial opportunities emerging from food-grains/
agricultural production/ imports are as follows:
Rice:
Rice is the main agricultural produce in Nagaland. It is the staple food of the population of the
state. In terms of quantity, paddy accounts for over 90% of the total food grain production. There
is considerable scope for widening the range of rice-based industries in Nagaland.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                         119
Maize:
High quality maize grows abundantly in several areas of Nagaland on lands unfit for paddy
cultivation. The maize has however, very limited market, as it is not a part of local diet.
Consequently, there is often distress sale of maize, especially during the years of bumper crop. It
is, therefore, essential to explore industrial uses of maize. The other industries that could be
based on maize are mini maize mills and small units for making popcorn, cornflakes, corn flour,
etc.


Spices:
Turmeric, chilly, ginger, coriander seeds, peppers, cummin seeds, etc. are the main ingredients of
spices. Many of these are abundantly available in the state. A spice-grinding unit is likely to have
high profitability with low investment and sizable indirect employment potential. Due to low
volume of the raw materials and processed products, their transportation will not pose many
problems; there will be market for the products even outside the state.


Mustard Oil:
Mustard is one of the main oil seeds produced in Nagaland. Many Nagas use mustard oil as
they’re cooking medium. There is, therefore, scope for setting up small mustard oil mills.


Citronella Oil Extraction:
Citronella grass grows in abundance in Kohima and Mokokchung districts. Citronella oil has
good market as it has a variety of uses in making products such as perfumes, mosquito repellents,
ointments and sprays. The scope of augmentation its production may increase in future.


Cattle / Poultry feed:
The main raw materials for these products are maize and rice polish. These are available locally
in abundance. The other raw materials such as wheat, bran, fishmeal, minerals, vitamin mix can
be brought from outside the state. A few units can be started for manufacturing cattle / poultry
feed. The cattle / poultry assets of Nagaland are of rather poor quality. Suitable feed only



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                           120
improve the yield of milk, meat and eggs but gainfully utilise the agricultural produces / wastes
that fetch negligible price.


Tea:
Tea growing has started in the state in some areas of Mokokchung and Mon districts. Since the
climate and topography are conducive for tea growing, it has shown promising results in the state
and this could be encouraged further.


Horticulture:
Horticultural production offers good scope for the following industries and private entrepreneurs
are encouraged to take up the ventures:- Fruit Preservation, Pineapple juice concentrate, Fruit
pulp, Fruit pulp, Jams and jellies, Banana / potato chips, Pickles, Pineapple and banana fibres
and Cold storage


Tripura
Food Processing
The agro-climatic conditions in Tripura are ideally suited for production of a large variety of
horticultural crops. The "Queen" and "Kew" varieties of pineapple, jampui oranges, litchis and
cashew of Tripura are well known in the rest of the country. These products are largely organic
in nature. The present estimated annual production level of major horticultural crops is as under:
                                  Fruit                            Quantity
                               Pineapple                          82,000 MT
                                 Litchi                            3000 MT
                                Orange                            16,000 MT
                                Cashew                            1,800 MT
                               Jackfruit                        2,20,000 MT
                               Coconut                            1,250 MT
                         Table 42: Production of various horticultural crops in the state
                            Source: Department of horticulture, Government of Tripura




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The production can be further increased, if demand is created by setting up Fruit Processing
units. The Fruit Processing industry in Tripura is still at a nascent stage. As regards pineapple
processing, NERAMAC (a Government of India undertaking), has set up a modern Pineapple
Juice Concentrate Plant at Nalkata in North Tripura District, with a processing capacity of about
5,760 TPA. The Plant at Nalkata is operating at a low level due to non-operation of aseptic filter.
TSIC (a state government undertaking), is also operating a small Fruit Canning factory,
producing fresh canned pineapple juice and other pineapple products. The factory has processing
capacity of 400 TPA. Cashew Processing has also been taken up by NERAMAC by setting up a
small unit. As regards other fruit products, proper processing facilities are yet to be created.

The state govt. has identified Food Processing as a major thrust area. Special Incentives have
been provided for Food Processing in State Incentive Package. A modern Food Processing
Technology Park is being set up near Agartala, to give a fillip to this sector. An Agri Export
Zone for pineapple is also being developed. There is a vast potential for setting up of food
processing units in the State.

The agro industries having potential in Tripura are:- Paddy dehusking, Oil expeller, Cold
storage, Vegetable processing, Potato chips, Flour, Rice bran oil, Noodles and Beer.

The additional projected production of food grains; Oil seeds, Potato Jute and Cotton will
provide opportunities for creating processing / service industries as follows:




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              122
                           Nature of Industries                                     Year
                                                                        2002- 03           2007- 08
                                Paddy dehusking                              10                 20
                                   Oil expeller                               5                 5
                                  Cold storage                                5                 5
                      Vegetable processing ( 4,500 TPA )                      1                 2
                           Potato chips (100 tonnes)                          3                 6
                              Flour mill ( 25 TPD)                            3                 3
                                  Rice bran oil                               1                 1
                                  Noodle plant                                1                 2
                                  Beer brewing                                -                 1
                           Mixed fibre spinning mill                          -                 1
                                  Power looms                                 -                  -
                                Cotton knitwear                               1                 1
                    Table 43: Past units and future estimates of no. of industrial units in the state
                              Source: Department of Agriculture, Government of Tripura




Horticultural and Plantation sector
The additional production of following horticultural product and plantation product will provide
enough raw material resources to attract processing industries for value addition. Fruit
processing industry to utilise Orange, Pineapple, Cashew nut and other fruits as follows:
                    Nature of Industries                                                         Year
                                                                                  2002- 03                 2007- 08
                 Fruit juice making factory                                            2                         3
                 Jam &Jelly making factory                                             3                         4
                         Cashew kernel                                                 1                         2
           Table 44: Past units and future estimates of no. of industries in horticultural sector in the state
                              Source: Department of Horticulture, Government of Tripura


The status of the plantation based industry using Tea leaves and raw latex in the state is as
follow:-

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                                 123
                   Nature of Industries                                                        Year
                                                                               2002- 03                     2007- 08
                  Tea processing factory                                             1                         2
                    Latex creaming unit                                              3                         6
                  Latex centrifuging unit                                            2                         8
             Table 45: Past units and future estimates of no. of industries in tea and latex in the state
                            Source: Department of Horticulture, Government of Tripura


Clearly, with the abundant supply for the raw material like rubber plant, latex creaming and
centrifuging units have immense potential in Tripura.

4.3.3 Infrastructure

Power Potential in the North Eastern region

Assam Government is looking forward for Infrastructure Development Strategic Plan which is
named as Assam Infrastructure Development Vision 2030. From an allocation of just Rs. 100
crore for year 2000-01 for roads development, the allocation has come up to Rs. 2800 crore in
2006-07 fiscal year.

The Northern Bank of river Brahmaputra river in Guwahati would be developed as a big growth
centre. Guwahati would be having a big railway station having connectivity with all major cities
of India. Guwahati has also air connectivity with almost all major Indian cities. Also,
international connectivity is being focused upon, in order to increase the frequency of flights
from Guwahati to international cities especially South-East Asian cities e.g. Bankok (Thailand),
Kuala Lumpur (Malaysia) etc.

Looking at the current power demand and supply scenario in Assam, it has around 11% of power
deficit during the peak load demand. Under the 11th plan commissioning of several small to
medium power plants is in the pipeline.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                                                  124
  “The power situation is not very good, but the government has plans of buying power from
  outside also. Even in the near future some plans are to be commissioned to cater the power
  needs.”

             -   One of the top officials from Assam Industrial Development Corporation (AIDC)




However, looking at the power deficit figures during the peak demand period, it is Meghalaya
that has significant shortage of power during the peak load.


  “Once upon a time we (Meghalaya Government) used to export power, but as lot of ferro-
  alloying units have come up in Ri bhoi district, which consumes a lot of power. But now, we
  are facing power deficit to the extent of 45% during peak times. ”

      -     One of the top officials from Meghalaya Industrial Development Corporation (MIDC)


As far as power generation is concerned, there is a huge potential for power generation based on
coal. The following statement from one of the top officials from the Ministry of Finance
corroborates the fact:


  “The potential for Coal based power plant is huge – Upper Assam area in the areas adjoining
  Meghalaya. Coal from Meghalaya goes to the foundries in Punjab. Meghalaya coal is ideal for
  power generation as the Sulphur content in the coal is high. Coal is in abundance, we can go up
  to 2 000 to 4000 MW of coal based power plant.”

                 -   One of the top officials in the Ministry of Finance at The Secretariat, Assam




Assam Gas Company Limited has plans for the gas pipeline plan from Upper Assam to Matia,
one of the growth centers in Assam. In the second phase, AGCL has plans to bring the gas from
Upper Assam to the Guwahati for the domestic use. These things are not very well organized. If

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                        125
any multi-national company coming to study the feasibility on these lines, it would be mutually
beneficial as the Assam’s economy is opening up.


  “From Royal Thai government we want infrastructure companies, capable of taking up large
  jobs and contracts with better technology and better skills by joining hands with local
  counterparts to take up infrastructure projects. The government is looking forward to invest in
  large infrastructure projects in Assam and North East.”

           -   One of the top officials from Assam Industrial Development Corporation (AIDC)



The major on-going infrastructure project where a possibility of tie-up can be looked at is the gas
pipeline project from Upper Assam to Guwahati.


  “Investment has started coming in all sectors in Assam. The mega project is Assam gas pipeline
  project which is Rs. 7000 crore project. We can build up on Thai Contactors Association, with
  whom EOI has already been signed.”

           -   One of the top officials from Assam Industrial Development Corporation (AIDC)




  “Usage of gas from Assam can be analogous to the usage of milk. Skim off the cream (high
  calorific value) from it by using it in the oil refinery (like Digboi) and rest 80% of the gas with
  low calorific value can be used for power generation. Low calorific value gas can be used for
  power generation.”
                -   One of the top officials in the Ministry of Finance at The Secretariat, Assam




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            126
As far as hydro power potential is concerned, there is significant potential for Medium to Large
hydro power projects in Arunachal Pradesh. Arunachal Pradesh is extremely rich in hydroelectric
power potential. In fact with an estimate of over 30,000 MW the state ranks first in the country in
terms of hydroelectric power potential. At present, Arunachal Pradesh is the state having highest
number of high head mini and micro hydel projects in India. The state has 37 power plants
ranging from 5KW to 4500 KW with a total installed capacity of 23.8 MW and firm power of
16.5 MW.

Also, considering Micro (up to 50 MW power plants) to Mini power plants, Mizoram state offers
significant potential for hydro power generation.



    “There is a good potential for hydro power generation through mini projects (up to 50 MWs)
    in Mizoram. Some of the hydro power projects coming up in the state are:-
                    Tuirini Hydel Electricity Project 38 MW
                    Tlawva Small Hydel Project 5 MW
                    Tuivawl Hydel Electricity Project 42 MW
                    Ngengrual Small Hydel Project 2 MW
                    Bairabi Hydel Electricity Project 80 MW
                    Kawlbem Small Hydel Project 3.5 MW
                    Tuivai Hydel Electricity Project 210 MW ”
       -   One of the top officials from Mizoram Industrial Development Corporation (MIDC)




Another Power generation potential is from Bio diesel – Germany today meets 40% of their fuel
requirements from bio-diesel. 20% of their maize production goes for bio-diesel. In Assam hills,
Karimganj and Kacchar areas are widely known for the cultivation of Jathropa plant (that is used
for bio diesel generation). Taking in to account the Agro climatic conditions, whole Assam is
ideal for the cultivation of bio diesel plant.



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                          127
The level of investment happening in the large projects like Cement and Paper manufacturing
can be assessed from the statement below:


  “Large number of projects has come up in cement which are worth more than Rupees 500
  crore. Paper projects like up-gradation of Hindustan Paper and participation by the private
  players are doing wonders in this field. These projects are worth more than Rupees 2000
  crore.”
            -   One of the top officials from Assam Industrial Development Corporation (AIDC)



There is a huge potential in the oil production from the hydrocarbon content rich coal found
across various belts in the state of Assam. The statement below substantiates the fact:



   “Swaminathan S Anklesaria Aiyar, who writes in The Times of India every Sunday as the
   columnist in the editorial page, wrote that India has enough oil trapped in shale and coal
   deposits in Assam and Arunachal Pradesh to produce 140 million tonnes per year for 100
   years, say former geologists of Oil India Ltd including ex-chairman and MD Chudamani
   Ratnam. This is more than India's entire current consumption, high enough to make India a
   member of OPEC…… The technology of extracting oil from coal with rich hydrocarbon
   content is present in other parts of the world e.g. Canada is doing this in Alberta basin.”

                                            -   One of the top officials at The Secretariat, Assam



Many companies have shown interest in Oil exploration and setting up oil extraction refineries in
the state of Assam.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                            128
  “Major oil companies have show interest in the oil exploration and setting up oil extraction
  refineries. Some of them are:- Premier Oil – UK based oil, Canroe, Reliance Industries. The
  Assam Govt. has also signed MoU with Oil India for oil exploration. We have also started our
  own – Assam Power and Hydrocarbon Company.”
           -   One of the top officials from Assam Industrial Development Corporation (AIDC)




The willingness to involve the investors from Thailand can be determined from the statements
below from one of the top officials of Assam Industrial Development Corporation.


   “AIDC would like to directly participate in industrial projects, power projects, hotels, real
   estate projects and commercial projects. AIDC may be interested in power projects with power
   production more than 40-50 MW.”
           -   One of the top officials from Assam Industrial Development Corporation (AIDC)



  “If Royal Thai Embassy can identify Thai companies who will be interested in participating in
  the execution of these projects, we can forward the request for any hydro-electricity project or
  power project on non-conventional sources of energy.”
           -   One of the top officials from Assam Industrial Development Corporation (AIDC)


Meghalaya is extremely rich in thermal power potential. It has vast coal reserves. This coal
reserves is having calorific value with low ash content but high in Sulphur content, which is
suitable for setting up thermal power projects. Meghalaya is one of the few states in the country
with a surplus capacity of power generation. State has a potential of about 3000MW. The excess
power generated in the state is being sold to neighbouring states. At present, Meghalaya under
the state sector has a total of five installed projects (all hydro) with installed capacity of
185.2mw.



INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              129
In the state of Nagaland too, there is a lot of emphasis on power generation. It has floated the
Special Purpose Vehicle to attract investment in the power sector.




   “Incase of power availability we have floated the SPV (Special purpose vehicle) to take up the
   infrastructure development projects in Nagaland. SPV is the joint venture company with the
   Govt. of Nagaland and IL&FS (Industrial Leasing and Financial Services). Land availability is
   not a concern for the Nagaland Government. The land is available in the state but it is seen that
   it has not been properly utilized.”
       -   One of the top officials from Nagaland Industrial Development Corporation (NIDC)

Road Infrastructure in the North Eastern region

There has been special thrust in building up the road infrastructure area. There has been
sufficient fund allocation in building the road infrastructure in the NE states. The NE states have
total 2,473 Kms of National Highways (NH), 5,711 Kms of State Highways, 15,154 Kms of
major District roads. The states has funds (from various agencies like Asian Development Bank
etc) to upgrade the worn out state roads.


   “Synergies can be looked into possible “win-win” collaboration between Thai investors and
   local entrepreneurs like us. They (Thai Investors and Government) have plant and machinery
   for preparing “cold mixes” and we have huge opportunities and funds (with central and state
   governments).”

                              -   One of the Assam based entrepreneur in the road infrastructure



Mineral Based Industry

Meghalaya with its wealth of mineral deposits has tremendous industrial potential. There are
extensive deposits of coal, limestone, granite, clay and other minerals. Coal deposits are
available in all districts and particularly in the southern slopes of the state. The coal bears low

INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              130
ash content and its calorific value ranges between 6500 to 7500 K.Cal/Kg. The total estimated
reserve of coal is in the region of 640 million tonnes. The coal is mainly of sub-bituminous type
and can be utilised in varied industries ranging from power, fertiliser, cement and textile to
paper, rubber, brick burning and also pottery based industries. The coal that is found in the State
can also be converted into coke to recover value added chemicals like light, medium and heavy
oil, phenol and producer gas.

Limestone is another mineral that occurs in an extensive belt (approx. 200 Km. Long) along the
Southern boarder of Meghalaya. The quality of limestone found here varies from cement grade
to chemical grade having three brands as well. Total inferred reserve limestone within the State
is about 5,000 million tonnes. The quality of limestone in the state has CaO content of 53% and
can be of use in steel, fertiliser and chemical industries. Granite of excellent quality is at present
being mined in the East and West districts of Khasi hills. Sizeable deposits are estimated and can
be found in various shades and colours.

Clay of various types such as Kaolin (China clay), white clay, and fire clay are found in various
parts of the states. This clay is suitable for the ceramic, paper, rubber and refractory industries. It
has been estimated that there are a few hundred million tonnes of clay reserved in the state.
Beside the above, other economically viable minerals like gypsum, phosphorite, glass-sand, base
metals, quartz and feldspar can be located in various parts of the state. The State is also credited
with having one of the most valuable sillimanite deposits in the world.

4.4 Incentives towards investments
The Central Government has provided various incentives towards the investment in the North
Eastern region of India. The various schemes for attracting the investments are as under:-
     • Central Transport Subsidy @ 90% of transport cost of raw material brought from outside
         the North-eastern region as well as the finished goods sent from the North-eastern
         region to other parts of the country. The transport cost between Siliguri (the entry point
         to the North-east) and the factory site only is considered for subsidy calculations. In
         addition, subsidy is also available @ 90% of transport cost on movement of raw


INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                              131
       materials and @ 50% of transport cost on movement of finished goods from one state
       to another within the North-eastern region.
    • Income Tax Exemption for 5 years for the new industrial units set up in the North-eastern
       region.
    • Growth Centres & IIDCs to be converted into total tax free zones for next 10 years. All
       industrial activity in these zones would be free from income tax, excise, for a period of
       10 years from the commencement of production. Similar benefits would also be
       extended to new industrial units or their substantial expansion in other Growth Centres
       or IIDCs of industrial estates/ parks/ export promotion zones set up by the states.
       Similar   benefits    will   also   be    provided    to   units   located   outside   the
       specified locations, if they belong to the specified industries listed in Annex A of the
       GOI circular.
    • Capital Investment Subsidy (CIS) @ 15% of investment in plant and machinery, subject
       to a maximum ceiling of Rs 30 lakhs would be given. Eligibility conditions will be
       same as in case of tax benefits.
    • Transport Subsidy Scheme will be extended for a period of another 7 years i.e. upto 31st
       March 2007, on same terms & conditions, as are applicable now.
    • Interest Subsidy of 3% on working capital loans would be provided for a period of 10
       years. Eligibility conditions will be same as in case of tax benefit.
    • A comprehensive insurance scheme for industrial units to be designed, in consultation
       with GIC and 100% premium to be borne by GOI for 10 years.




INVESTMENT POTENTIAL IN NORTH-EASTERN STATES OF INDIA                                         132

								
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